Bankruptcy Attorney | Spring Cleaning for your Finances
Bankruptcy Attorney . With spring finally here, many of us are pulling out the cleaning supplies for a deep spring cleaning project. But spring cleaning isn’t only for the garage or yard: you should also start spring cleaning for your finances. And we’re not talking just about old files.
A financial spring cleanup is a good time to reevaluate your budget, debts, and loans and check on your holdings. Here are our tools and tips for cleaning up and organizing your financial papers.
1. Start with the budget
If you maintain a current budget plan, now is a good time to evaluate its effectiveness. What works? Have you saved money? Are their new expenses to account for? You want your budget to be flexible but responsible, in order for it to work efficiently. Combing through your budget every few months can help you find places to improve without too much stress.
2. Start the clean-up process.
If you have a filing cabinet for all your important paperwork, now is a good time to go through it. The federal government recommends that you keep bank statements for only a year, but hold on to tax records and documents for as much as 7 years. This can help prevent any credit history mistakes, or be used during an audit. All other outdated documents should be shredded or disposed of responsibly.
As you toss out old, unnecessary documents, make sure that you maintain an organized system for your papers. For example, you should divide home or personal documents from your business documents, especially if you’re self-employed or own a business. You might also want your utility bills in a separate folder, but all your insurance policies in another. An organized filing system in a special folder or filing cabinet will make it easier for you to find the necessary documents when you apply for a loan, file your taxes, or even file for bankruptcy.
In addition, you should also move sensitive documents–like your social security card and passport–into a safe place, such as a fire or water-proof safe. Recovering these documents after damage or loss can take a long time, and also put you at greater risk of stolen identity.
If you keep your files online, make sure that they are secured and backed up. You might want to password protect your financial folder. In addition, make sure that your computer is safe by enabling a firewall and using only secure networks for online browsing. This will help protect you from hackers who want to steal your sensitive information. If you use online banking, make sure that you change your passwords at this time as well.
3. Check up on all your accounts.
Now is also a great time to check up on all your accounts. This can include your bank accounts, 401(k) and retirement plans, credit cards, and loans. An annual check up can help you spot any mistake or fraudulent charges, but can also help you save money. By checking up on your accounts, you might be inspired to look for better rates on your loans and reoccurring expenses, like your cellphone plan.
4. Create a home inventory.
If you have renters’ or home insurance, you’ll need to keep a record of all your possessions. This makes it easier for you and your insurance to account for all valuable items in the event of a disaster. Your inventory should include a photograph of the item, its receipt (if applicable), and its estimated value at the time of purchase.
Bankruptcy Attorney . Overall, spring cleaning your finances can sound intimidating, but imagine the sense of comfort and accomplishment you’ll feel when you’re finished. By regularly organizing and cleaning up your finances, you’ll have a better picture of your money profile. Happy Spring cleaning! -blog.startfreshtoday.com
Call attorney David Pinkston, bankruptcy attorney, for a free consultation today: (904) 389-5880. If you are thinking about #bankruptcy, #chapter13bankruptcy or #foreclosure in the Jacksonville, Florida area, you should call attorney David Pinkston. David is very experienced with all aspects of bankruptcy law yet very personable and easy to talk to. Call Us Today! (904) 389-5880