When we hear the words “spring cleaning”, most of us think about the junk drawer or the hall closet that desperately needs some TLC. When we hear the words “spring cleaning” we think of dust, clutter and mess. What many of us tend to forget when we hear the words “spring cleaning” is financial spring cleaning which is something that we need to do at least yearly.

So, what does financial spring cleaning mean exactly?

It means destroying old documents you no longer need, filing bills and bank statements away and throwing away the junk mail you did not sort out initially.

It also means gathering your tax information (which is due on Monday!) and charitable giving receipts for your accountant.

It means pulling your credit report and going through it carefully.

In addition, it means making sure you renewed your Home Warranty. Here are some interesting facts about why a home warranty is a smart decision:

• The average life expectancy of nine critical appliances/home systems is 13 years.
• The likelihood of failure of one of these systems in a given year is 68%.
• Total 4-5 year cost for warranties on systems and appliances is approximately $4K.
• Approximately 50% of those employed live paycheck to paycheck.

It also means making sure you have adequate insurance coverage. Here are some good reasons to contact your Allen Tate Insurance Agent about a quote:

• Your marital status has changed.
• Your teenager began driving.
• You purchased a new car.
• You changed jobs.
• You have had extensive improvements or additions to your home.
• You have moved.
• You moved into a new rental home or apartment.

Making sure your finances are in order going into the summer will help make that vacation (or staycation) much more relaxing!

By Regina Walter