Spring Clean Your Finances

As everyone starts cleaning out their garages, homes, and yards from the holidays, don’t forget to keep in check of your finances. Don’t just spring clean your living areas—make sure your finances are in-check, too!

Start looking ahead to summer and fall expenses

With summer around the corner, it's time to take a look at your budget and review anything that you may need to account for. Determine if there will be an increase in expenses such as vacation costs and back-to-school shopping. Additionally, consider any annual or semi-annual bills such as car registration fees or insurance premiums that are due. Knowing what’s ahead can help ensure you don’t find yourself strapped for cash later in the year, especially if you are close to retirement and on a fixed income.

Setting aside a portion of your income each month can also help ensure there is enough money to cover these expenses without running out of funds. Reviewing your spending habits and looking for areas where you can save will help you allocate more money toward those summer or fall budget items. You may even be able to find ways to lower expenses such as shopping for back-to-school items for your kids or grandchildren during sales or booking travel in advance.

Review tax changes for filing in 2023

With tax day on April 15, now is the perfect time to start filing. Every year filing taxes is a little different, so you'll want to familiarize yourself with the changes if you aren't using an accountant to file your taxes. The IRS has made several updates to tax codes and laws. To simplify filing processes, the IRS is encouraging taxpayers to use updated forms or software when submitting their returns.

One key change for 2023 is the elimination of itemized deductions in favor of the "standard deduction," which allows taxpayers to claim a single, flat deduction amount. This helps simplify the filing process for those who itemize deductions and don't need to list each individual one. Additionally, the standard deduction has been increased significantly from previous years, so many taxpayers will be able to get a higher return by taking advantage of this change.

Another major change is the introduction of a new "simplified option" for self-employed individuals. This option allows them to take a standard deduction, rather than itemizing expenses and deductions associated with their business. This makes filing taxes much easier for those who are self-employed and don't have access to the same complexities as traditional

Check your credit score

Checking your credit score regularly is an important step in taking control of your finances. It allows you to see how lenders are viewing you and make sure that any errors or incorrect information is corrected quickly.

The first step in checking your credit score is to contact one of the three major credit bureaus – Equifax, Experian, and TransUnion. Each of the three bureaus maintains its own credit report and associated credit score. You can request a free copy of your report once every 12 months from each bureau.

You can also choose to purchase your credit score directly from the credit bureaus or through third-party services like Credit Karma or FICO. Once you have access to your report and score, review it carefully for any errors or inaccurate information.

If you find any discrepancies, take steps to correct them right away. This may involve writing a dispute letter or contacting the creditor directly. It’s also important to keep track of when these errors are corrected so that you can monitor your credit score and ensure it is accurate.

Improving your credit score

If you want to improve your credit score, there are several steps you can take. First, make sure all of your payments are made on time every month. Paying bills past their due date will lower your score significantly. You should also aim to keep your debt levels low by only using credit cards when necessary and paying them off quickly. Additionally, try to stay away from obtaining too many loans or other forms of credit all at once. Too much debt can have a negative impact on your score.

You can also consider taking out a loan with a lower interest rate if you are able to pay it back in full. This will help you keep your payments down and credit utilization rate low. Finally, it’s important to regularly review your credit report for any errors or fraudulent activity. If you spot anything that doesn’t look right, contact the appropriate credit bureau right away. Taking these steps can help you improve your credit score over time.

Take some time to review your credit score and reports at least three times a year, and spring is the perfect time to do it. If you find something that looks incorrect, dispute it to make sure it’s taken care of.

Evaluate your insurance coverage

Now is a great time to review and evaluate your current insurance coverage. Whether you have homeowners, car or other types of insurance, it's important to look at what you have and make sure it meets your needs. Taking the time to assess your coverage can help ensure that you are properly protected in case of an emergency. It's also a great opportunity to see if you can find better deals or save money on your premiums.

Start by reviewing your current insurance policies, and compare them with the coverage of other providers. Look for discounts, such as for multiple policies with one company or for having security features like smoke alarms and burglar alarms installed in your home. Make sure to also check for coverage limits, exclusions and deductible amounts.

If you are in the market for car insurance, look into different insurers and compare their rates. See if there is a discount for being a safe driver or having multiple vehicles insured with one company. Additionally, understand your state's minimum liability requirements so that you are adequately covered.

As for homeowners insurance, review your coverage and keep track of home improvements you have made so that you can adjust your policy to reflect the updated value of your property. Don't forget to look out for discounts such as those related to safety features or claims-free history.

By taking the time this spring to evaluate your policies and coverage, you can make sure that you are adequately protected in the event of an emergency or other unforeseen circumstances. It is also a great opportunity to save money on your insurance premiums by making sure that you have the right policy for your unique needs. Don't hesitate to contact an independent agent or a financial advisor who can help you find the most competitive rates and customized coverage that best fits your budget.