LITTLE ROCK, Ark. (KTHV) -- Today is the first day of spring, which means spring cleaning!
Few of us may think of financial planning in the traditional sense of spring cleaning, but this is the perfect time to stream-line your budget for spring. Here are some tips from Investopedia.
1. Review your budget - Take this opportunity to look over your current budget, update changes in expenses, and plan for contributions to savings accounts. Check out sites like Mint, Budget-Tracker and Pear-Budget that offer free online software to plan your budget.
2. Decide what expenses can be trimmed - Evaluate your "wants" from your "necessities." To start this process, brainstorm a list of all the items you spend money on in a year, and checking off all your needs. What's leftover is your "wants."
3. Shred or organize your financial documents - Generally, it's advisable to keep all tax returns, canceled checks and returns, and other receipts verifying tax deductions for six years because that's the window for Internal Revenue Service audits. All other paper-work can be dumped.
4. Review your insurance coverage - Add up how much it would cost to replace all of your valuables and compare this figure with the amount of coverage in your homeowner's policy to determine whether you're over or under-insured.
5. Organzie and update your financial passwords and documents - A spring cleaning of your finances should also include organizing all your passwords, varying passwords, and compiling them in a single, secure spot.