Take a deep breath. Inhale. Exhale. Ah. The smell of spring and spring cleaning. Spring cleaning in the finance world equates to a quarterly financial check up. Because Spring happens in late March and the IRS happens in early April. And nothing makes us think about what we’ve done with our money over the past year (or three) like filing our tax returns do. Tax returns have us rethinking our lives!!
Most people dread April 18th. In fact, they dread it so much, many people refuse to acknowledge the IRS changed the due date from the 15th to the 18th several years ago due to the Emancipation Day holiday in the District of Columbia, where the Internal Revenue Service’s headquarters are located. April 15th has been drilled in our heads for so long, that it’s a date we are still talking about in November.
Which makes April 15th a great time to perform a quarterly financial check up. Are you making your money work for you as hard as you are working for your money? Of course you are! Because your Divatude won’t let you be lax about this subject. Right???? Here’s a list of suggested checks to perform this month. Let us know how you’re doing with your money this year. Surprise yourself and the IRS in 2017.
- Check your exemptions at work. If you find yourself owing an exorbitant amount every year, you’re not having enough taxes taken out of your income. The lower the number of exemptions; the more taxes you are paying. Also, check your filing status. Single persons pay a different amount than married households.
- Check your investments and their distributions. During the 4th quarter 2015 and 1st quarter 2016, The Market experienced a little volatility. Nothing to fret over. Gains have been happening through the the month of April. However, now is a good time to take a look at your investment performances – including retirement plans and trading accounts. Maybe a little reshuffling is in order; maybe not.
- Check your savings plans. You know where that tax refund should go. Are you on target to meet your 2016 goals? If you continued saving at the current rate, would you meet, exceed, or fall short of having a 3-6 month emergency fund? Adjust accordingly.
- Check the mail!!! That pile of papers on the table? Yeah, some of it can go in the trash. This is how we “lose” hospital bills and rebate checks.De clutter and simplify to make organization of your finances smooth.
- Check your credit. Anything new and exciting happening there? Or new and perplexing? Sign up for one of the free credit score reporting services to make this easy breezy, as well.
- Check your last will and testament and your living will or advance directives to see if any changes need to be made.
- Check your closets. Warmer weather makes the perfect excuse for shopping and budget busting. However, because you don’t want to spend money on items you already own…..or reclutter your closet after all that spring donating you did for Lent….and make sure what you have, you can still fit.
Happy Spring Cleaning!
findyourdivatude 