After the tax season and end-of-year dust has settled, many are left with a pile of paperwork and a cluttered office area. Weeding out and decluttering paperwork can have many benefits, like not being late on bills and other payments and avoiding fees associated with late payments.
Being organized can also help your family if you were to pass away unexpectedly. Having account numbers, website passwords and key financial information can make an already difficult time easier on your family.
Staying organized can help them sort through a myriad of information to get your estate sorted out quickly. Imagine if they didn’t know who your life insurance beneficiary was. It may make the death benefits process a confusing and lengthy one.
We’ve got some tips on how to declutter your finances and life.
Ask, "Do I Really Need It"
Start by tackling the piles of paper you have saved. Sort through them and ask yourself if you really need them. Don’t be afraid to toss papers you think you should save, like bank statements. If it’s easy to find again on the Internet or through the company you received it from, you probably don’t need a paper copy saved.
File It Away
Once you’ve decided what you should keep, don’t just put it back in a new pile. Create a filing system that works for you and stick to it. Start with three basic categories, action, pending and file. Action is for items that require immediate attention, like bills. Pending is something that requires attention, but not immediately, and file is for things to put away in your file folders.
Once you start creating file folders, there is no limit to how many you can create. Start a file for things that would otherwise have no good home, like receipts or tax documents. Be sure to create a file for the most important items, like account numbers, passwords and life insurance beneficiary information. This file may help your loved ones if you die unexpectedly and can help you grab important information if you need to remove it from your home quickly.
Grow Your Emergency Fund
An emergency fund is an easily accessible stash of money for use only in case of emergency. It is not to be used to buy a new car. It is not to be used to buy a new Playstation. It is not to be used to remodel your bathroom. It is for use only in case of emergency.
Though personal finance experts agree emergency funds are necessary, there’s no consensus on how much is enough. Some say you need save a year’s salary. Others believe $1000 is sufficient. Most advice tends to fall someplace in the middle.
How much do you really need? As usual, do what works for you. There is no one right answer. Examine your situation — your income and your needs — to decide how much you should save.
Make Sure Your Life Insurance Is In Order
As we always say, life insurance is key to making sure your finances are in order. The peace of mind alone that comes with the purchasing of life insurance is enough to have it included in this list. With your life insurance in order, you can rest easy knowing that whatever situations or emergencies may arise, your family will be taken care of, and they won't have financial worries.
Taking on the task of decluttering can take a huge chunk of time, but once it is done and organized, you will see the rewards immediately, and your wallet will thank you.
If you want more financial information, or would like a quote on life insurance, give us a call at 800-301-8113. Or visit www.goldcoastlifeinsurance.com.
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