May is an excellent month to review your personal finances, especially after the many financial literacy resources shared throughout April. Now is the perfect time to apply those strategies to your own situation and ensure your important documents and information are up to date.
Review Key Financial Information
May is a good time to update important information. Review your designated beneficiaries on life insurance policies and retirement accounts. Ensuring these reflect your current wishes can prevent costly mistakes.
Update Insurance Information
Check your home and auto insurance records. Have you purchased a new car, added drivers to your policy, moved, or received a new Medicare card? These changes require updates to your insurance documentation.
Spring Clean Your Financial Documents
Spring is a great opportunity to weed out financial documents you no longer need. If you do not own a shredder, UPS, FEDEX and Staples stores often offer shredding services. They charge by pound. Your local municipality may also host free shredding events.
Clear Digital Records
Review and remove documents stored on your computer, external drives, and other devices. Reducing digital clutter can make important information easier to locate.
Protect Yourself from Identity Theft
Keep your financial information safe by following IRS guidelines on fraud prevention and identity theft.
End on a Positive Note
After ‘spring cleaning’ your finances, take time to relax and enjoy the satisfaction of being organized and prepared. Stay tuned for next month’s AADMM Financial Tip!
