Spring is a great time to clean out your home, and it doesn’t have to stop there. If it’s been awhile since you’ve reviewed your finances, it might be time to clean out your financial junk drawer. Spring cleaning your finances can help you get a clearer picture of where you stand and how far you are from reaching your financial goals. It can also help ensure that you have the proper resources and correct information in place.
Follow these steps to help declutter your finances, so that you can have a clearer picture of your financial world.
Assess Your Spending
As you’re going through your financial junk drawer, take the time to set goals as to how you want to spend and save your money. By going through that process, it will help you prioritize your needs and wants. Checking out your credit report can also help you determine if you need to cut back on your spending and start addressing debt instead.
Shred What You Don’t Need
If you have papers that you no longer need, be careful when you toss them into the recycling bin. Documents that contain personal or sensitive information, such as utility bills and bank statements, should be shredded to avoid any potential risk of identity theft.
Back Up Electronic Copies
With the option to receive paperless statements and documents, downloading electronic copies of bank and insurance records and other important documents to your computer is easier than ever. However, be sure to back up the files to a separate hard drive or cloud storage in case your computer crashes and the files are unrecoverable.
Check Your Beneficiaries
Have you gone through any life changes recently, such as marriage/divorce, new child, or inheritance? If yes, make sure that your financial accounts, including your 401k, and insurance policies state the correct beneficiaries. You’ll have peace of mind knowing that your money will be going to who you intend to receive it today, and not who you wanted it to go to years ago.
Take Stock
Once your finances are organized, it’s time to take stock of your financial world. Have you achieved the goals you wanted to accomplish by now? Are you where you want to be? If you’re not there yet, figure out what changes you need to make to achieve your goals, or reach out to a financial advisor for assistance.
If you’re seeking financial guidance, stop by a First Mid banking location to see a First Mid Wealth Management financial advisor who can help you with a financial plan.
Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC, and are not insured by bank insurance, the FDIC or any other government agency, are not deposits or obligations of First Mid Bank & Trust, are not guaranteed by First Mid Bank & Trust, and are subject to risks, including the possible loss of principal. First Mid Bank & Trust and First Mid Wealth Management are not registered broker/dealers and are independent of Raymond James Financial Services, Inc. Investment advisory services offered through Raymond James Financial Services Advisors, Inc.
