The Financial Spring Clean

Getting your life in order is never easy. When you throw finances into the equation, things get even more complicated. But, it’s worth reassessing your financial situation once every year. It’s the only real way to get an idea of what footing you’re on. Plus, you never know what’s around the corner. If your finances aren’t in order, a major financial setback could cause disruptions. If you keep order, you’ll be prepared for every eventuality. Think of it as a financial spring clean. Here are a few areas worth your attention.

GET A GRIP ON THINGS

To start, you need to get a general grip on things. You want to know how much you’re worth, so to speak. Accumulate your earnings, the cost of your belongings, and any savings you have set back. It won’t be an easy task, but it’s important. An excellent way to get started is to draft a will. It can seem like a bleak task, but it’s a sure way to consider everything you own. Nothing works so well for finance and estate planning. Plus, it gives you and your family an easy go to should you need to reassess. And, despite what we like to think, it’s never too early to get started on this!

INSURANCE WHERE YOU NEED IT

Over time, we accumulate homes and belongings. We take great pride in these high-end purchases. But, it’s easy to forget the paperwork as you trundle along. Use this time to get insurance where you need it. Set aside a day in which to work out what you need and how to get it. Home insurance is a must. Chances are, your house is your most expensive commodity. So, make sure you take steps to protect it. It’s also important to insure your expensive belongings. If you spent a lot of money on it, it’s worth paying to protect it. And, don’t forget the most important thing - your life. It’s never too soon to get life insurance quotes. It’s another one of those things we hold back doing. But, the sooner you start to pay into a plan, the more money your family will receive if anything happens. So, get started! You can return to these policies with each cleanup, and reconsider whether you have the best deals. 

LOOK TO THE FUTURE

Of course, getting your finances in order now is well and good, but that’s not all you need to consider. It’s also important to think about your financial future. You’ve already done that in part if you followed the last two steps - life insurance and a will are a big part of this. But, it’s also worth considering your pension. Take this as a time to get a grip on your pension, too. Contact your pension company to find out how much you have, and how your retirement will look if you continue with the plan. If you’re not happy with it, use your new financial knowledge to make a change.