Spring cleaning is a common tradition in the United States, and after the bedrooms and garages are cleaned out, people may also benefit by organizing their financial houses. Taking a thorough look at where they stand and getting necessary documents in order is a great way to assess financial progress, determine strengths and weaknesses and implement new strategies.
Individuals can start by gathering all of their household paperwork, including financial statements, insurance policies, retirement accounts, credit card statements and tax forms. Organizing this paperwork into records that should be kept and statements that can be tossed will not only clear out some space, but also allows people to see where they stand financially. Those who have set money management goals can also rely on their financial statements to show them how close they are to reaching their goals.
Examining their current accounts is another way people can make sure they are getting the most out of their service providers. Individuals may consider shopping around for better interest rates and services. There are several financial service providers that offer different terms and products, so shopping around for different options can help people find the ones that benefit them the most.
People who want to put a stop to their paper statements and manage their affairs electronically can also contact their service providers during this spring cleaning session. Bill pay services are a great way to remove some of the clutter of paper statements, while still meeting their financial obligations. People can also simplify their lives by enrolling in direct deposit with their bank or financial services provider. Once enrolled, consumers can have their paychecks directly deposited into checking or savings accounts as well as onto prepaid debit cards.
Simplifying day-to-day transactions is only one piece of the puzzle. People can also prepare for their futures by assessing their retirement accounts. Whether it means increasing the amount of their retirement contributions to a 401(k) or IRA, or purchasing an annuity, there are several options consumers can consider to boost their growing nest egg. In other cases, people who have maxed out their retirement contributions for the year may choose to learn about other types of wealth-building investments, such as traditional stocks and bonds to certificates of deposit and money market funds.