Your finances also could use a spring cleaning
By Michelle Singletary
WASHINGTON — It's spring-cleaning time, and my husband and I use this time of year to clear the clutter when it comes to our finances.
"What a perfect opportunity to get organized before summer hits and we all start running all over the place," says Joanne Kerstetter, spokeswoman for Consumer Credit Counseling Services of Greater Washington, a division of Money Management International.
Now's the time to get out your old will — if you even have one. You, of course, should have one, especially if you have underage children. This spring, my husband and I are going to update our will, something we should have done long ago. We've had two children since we had our first will prepared. We'll also review the people we designated to hold power of attorney and our healthcare proxies.
You should also review your insurance policies to make sure you have the right coverage.
A good way to start your financial spring cleaning is to organize your files, throwing out documents you no longer need, Kerstetter says.
In fact, clutter can be costly, according to Harris Interactive, a market research firm. The company found in one of its polls that 23 percent of adults say they pay bills late because they can't find where they put their statements and as a result also end up paying late fees.
There are bills or statements that you do need to eventually get rid of. Here's a quick list of the papers you can toss, according to the National Foundation for Credit Counseling (NFCC):
While you have your files out, you might want to prepare a "letter of instruction" that includes the whereabouts of all your essential documents, such as a will, bank statements, insurance policies, checking accounts, stock portfolios and mutual fund statements. Give the letter to a trusted person or the executor of your will.
You should also use this time to clean up your credit reports, Kerstetter says. Every 12 months you are entitled to get a free credit report from each of the three major credit bureaus. Go to www.annualcreditreport.com for the free reports or call (877) 322-8228. Once you get the reports, check to make sure all the information is accurate.
