After tax craziness subsides, spring is an ideal time to take a look at your money management. Here are some post-tax season money tips to help you get your finances in check before summer:
1. Run Your Credit Report
Your credit score can impact everything from your mortgage rate to your credit card approvals. In some cases it can even affect your competitiveness as a job candidate. A trusted CPA can help you go over your credit report so you know what you’re looking at.
2. Negotiate Better Prices and Rates
Bargaining for better rates with internet service provider or insurance company can reward you with savings this spring, and throughout the year. Doing this can help free up money for investing or paying down debt. Also, take a look at your current bank: is it giving you competitive rates?
4. Count Your Debt
Understanding how much you owe is extremely important to financial freedom. If you receive a refund on your taxes this spring, use it to pay off any high-interest credit card debt. In some cases, getting a personal loan to pay off balances may be your best course of action.
5. Organize Finances
In addition to cluttering up your home, financial documents often have information that can be used to steal your identity, so it’s important to handle them properly. As part of your spring cleaning, shred paperwork you no longer need, then consider digitizing the financial documents you must keep and store the hard copies in a safe place.
ATM receipts can be shredded once you verify that the transaction has been accurately recorded on your bank statement. Deposits slips should be kept until you verify the funds in your account.
Receipts for things you purchase should be held for one month unless the purchase is associated with tax deductions or business expenses. Bills, pay stubs, and bank statements should be held for at least one year and tax returns including your W2s and/or 1099 should be held for seven years.
6. Create a Personal Finance Statement
It’s important to manage your money day to day, but you also need a good understanding of your overall financial health. Creating an annual personal finance statement can help you track your assets, liabilities, and net worth. Because spring coincides with tax time, it’s the perfect opportunity to compile your yearly personal finance statement.
7. Find the Right Financial Advisor
A well thought-out investment plan can go a long way toward helping you reach your goals. No matter what your income is, finding a financial advisor who understands your needs should be on your spring to-do list.
Williams and Kunkel, CPA, LLP, CPAs can offer sound financial advice regarding all the post-tax season money tips above. Call us today in Flower Mound at 972-446-1040.
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Source: The Street