Tag: shredding

Spring Cleaning For Your Financial House!

It is Spring!  This time of year, we all want to make changes and put things in order for this new season.  In addition, the tax deadline is next week, so let me recommend putting your Financial House in Order, too.    Here are 6 steps to get you started:

 

Shred your discarded personal papers.  Why Shred?  For safety sake.  You want to make it as difficult as possible for someone to commit a crime like identity theft against you.

If you don’t have a shredder, get one.  If (and when) you have a shredder, create the daily or weekly habit of shredding any un-needed paper with personal information on it.  If you tackle this job in little pieces regularly, you won’t amass big piles of papers to shred.  (Note – this is a great job for a helpful child!)

If you already have big piles of papers needing shred, keep an eye out in your community for free Shred Events.  If you just want to catch up and get it all shred at once, you have a couple of options.  The three big office supply stores, Office Max, Office Depot and Staples, all offer shredding services on a per pound basis.  In addition, you could contact ProShred or Shark Shredding , and make an make an appointment to shred all your papers at once.

 

Go on-line and request your Credit Report.  Why get your credit report?  Your credit report is a snap-shot of your financial identity.  Reviewing your credit report may uncover unresolved issues that are harming your credit score, or long-neglected credit cards or accounts that are still active.  Take time to review your report, and follow-up with any issues you notice.  And make a note in your calendar to do it again next year, too.

There are three reporting agencies, Equifax (www.equifax.com), Experian (www.experian.com) and Transunion (www.transunion.com).  I don’t know about other states, but I know that as an Illinois resident, I am entitled to a free credit report from each agency every year.

 

Buy a fireproof Safe.  If you don’t have a safe, invest in one.  Make sure it is fireproof and portable, and that you, your spouse, and one other person that doesn’t live in your house knows where the key is kept.  Store your irreplaceable vital records in there, like birth / sacramental / marriage and death certificates, insurance policies, passwords, Wills, car titles, etc.

 

If temptation to spend is great, physically “Freeze” your credit cards.   I heard this tip years ago, about a woman struggling with credit card debt actually freezing her credit cards in a large block of ice.  The idea was to make it complicated to use credit, so she would have a chance to consider and re-consider any purchase made with credit.  I don’t know if you want to really freeze your credit cards, but you could remove all but one from your wallet and put the rest away somewhere safe, like in the safe mentioned above or, well, a well-disguised block of ice.

 

Make sure your Beneficiary allocations are up-to-date.  Check your retirement accounts, insurance policies, etc., and make sure that the stated beneficiaries are who you want them to be.  Too often we forget this step, and our loved ones could lose out.

 

Add a “2014 Income Tax information” file to the front of your top file drawer, and make a habit of tossing charitable donation receipts and other pertinent tax info in there.  It will make tax time go more smoothly next year.

 

Add these steps to your Spring Cleaning plan this week, and get your Financial House in order, too.

Paper Management Suggestions for the Lady at the Gas Station.

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A woman noticed the magnets on my van, and asked me about my business.

She said “I always say, I need someone to help me with my files.  I always think that it’s just me, and there is something wrong with me”.

No, there is nothing wrong with you, and you are not alone in struggling with your papers. Here’s why:

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  • Most of us keep too many papers, and / or keep papers for too long.
  • Most of us name our files the wrong thing, if we even have files.
  • Some of us have barriers to filing, either real or imagined.
  • Most of us don’t maintain our papers often enough.

We keep too many papers, and we keep them for too long:

We keep receipts / business cards / post-it notes / grocery lists far longer than they are useful.

We keep newspapers / children’s daily school work / magazines long after they’ve been read.

We keep papers out of habit, because they started out as “important”, but now they are just old news.

We want to hold on to our papers for “just-in-case”.  HOWEVER, You can purge your papers if:

  • The information exists somewhere else (medical records or on-line banking information);
  • The information is not pertinent to you (flyers for activities that don’t interest you or past events)
  • Purging the paper will have minimal consequences (who reads the privacy notices from credit card companies?)
  • You can’t imagine when or why anyone would ask for that information (utility bills or grocery bills from more than a few months ago, account information from long closed accounts, etc).

We name our files the wrong things, if we even name them at all:

Never name a file Miscellaneous.  Ever.  Either a paper is necessary enough to warrant a file named for it, or it isn’t important and it needs to go.  If you have a “Misc.” file, perhaps it could be more aptly named….:

  • marketing ideas
  • Action Papers
  • general credit / banking information
  • Work To Do
  • You choose…. But make it meaningful.  Name your files, name your papers and get to work.

We have barriers to filing, either real or imagined.  They may include:

  1. Non-existent filing systems (your important papers don’t have a final “Away” in your home or office).
  2. Antiquated filing system (what worked 20 years ago doesn’t anymore).
  3. Physically inconvenient filing: perhaps the file cabinets are under other things, or in a remote corner of your home or office, so papers never get put away, reviewed or purged.
  4. Too-Full file drawers – you have files from 2007, but no room to file the papers from last week.

The solutions are simple: purge the clutter, move the file cabinets, purge or shred the unneeded content.

Most of us don’t maintain our papers often enough.

I know that sounds scary.  As though I am telling you that you have to find more time to work on your papers – ahhhhh!!

But remember, I just told you how to keep a lot less.  Really, we just need to perform maintenance more often but for less time total.  Five to 10 minutes a day to:

  •          Open today’s mail;
  •          Shred today’s shredding (a few pages);
  •          Toss the recycling (a few pages);
  •          Pay this week’s bills (once a week);
  •          Enter a few items into your calendar; and
  •          File the few papers that you actually need to keep.

So, to the lady at the gas station and to you, try one of these ideas this week, and you are not alone in your struggles with paper management!