Spring has been pretty much absent here in Michigan. Last weekend we had an ice storm. Temperatures have been about eight degrees below average for the month. Snow showers and accumulations are still a regular occurrence. Still, spring has to come sometime, right? We’re still hoping. But, even if the weather isn’t cooperating, spring is still on the calendar. Now’s a perfect time to spring clean your finances. Here are a few easy tips to get started.
Calculate Your Net Worth
We calculate our net worth every month, so this is easy. But if you don’t do this regularly, now’s the perfect time. Net worth is an easy calculation. Simply add up all of your assets. Then add up all of your debts. Subtract debts from assets and that is your net worth!
Compare Net Worth To Last Year If Possible
Hopefully you know your net worth from last year, in which case you can do a comparison. If you’re doing things right, the number is higher. If so, celebrate. Keeping regular comparison points along the way will help show you how things are going.
If you don’t have last year’s number handy, don’t fret. Simply mark down this year’s and do the comparison next year. It’s never too late to get started!
Run A Credit Report
You get three free credit reports per year, one from each of the major bureaus. Now is a perfect time to run one of your free reports. Ideally, run one report every four months, rotating between the three.
When you get your report, look through it line by line. Make sure you recognize every account and that the balances make sense. This will summarize what you owe and what you can potentially borrow. It also helps to make sure nobody has opened any credit in your name unknowingly. Plus, you can make sure there’s nothing that’s been forgotten about.
Check On Goals And Revise Them (Or Make New Ones)
If you’re like me, you set some financial goals at the beginning of the year. Now’s a great time to check on those and see how you’re doing. If any revisions are necessary, make them now. Or, if you didn’t set any goals back in January, why not set some now? It’s never too late. Plus, you have eight months to get things done!
Clean Up Your Tax Documents
Tax season is behind us, and unless you filed an extension, your taxes should now be filed. Now’s the time to make sure your tax records are in order. You need the last seven years of records in the event of an audit. Make sure you have all of those in one place and that they’re safely locked away. We keep ours in a fireproof safe.
If you still want to keep your records beyond seven years, I absolutely think that’s a great idea. But, make sure that you have the last seven years worth at hand.
What Spring Cleaning Do You Do?
It’s your turn. What spring cleaning activities do you do for your finances? Let me know in the comments below.