5 Things You Should Be Doing Right Now for Your Personal “Spring Cleaning”!
Most of us think of spring cleaning as clearing out the garage or organizing the closet. But really spring is the perfect time for cleaning up something so much more meaningful—our lives. It’s a great time to think about which direction we are headed, and to make sure we’re on the best path to get there.
That usually requires a good, honest look at our financial situation. Because whether we love it or not, money makes the world go around and is often needed to take that next step, or help that person out, or fund that new home or new business.
Here are 5 things you should be doing right now for your personal “spring cleaning”:
Know the numbers: Most people have no idea the answer to these three simple questions: How much total income do you net each month, how much money do you owe, and how much money do you need to live the lifestyle you desire (including savings, retirement, charitable giving, etc.) Knowing these numbers is the perfect first step to spring cleaning your finances.
Evaluate your expenditures: Now that the holidays are well behind us, and hopefully we are seeing more money back in our accounts, spring is a great time to print out your statements and evaluate whether your expenditures are the best use of your hard-earned dollars. This includes everything from your Netflix subscription to the staff you support. A simple way to do this is to assign a simple grade of A, B, C, D, or F next to each expenditure. When assigning the grade, ask yourself, is this expenditure necessary, can I get it for cheaper, how much happiness does it bring me, and could I live without it?
Set up a budget: Most of us dread the word budget. It’s right up there with “dentist” or “taxes”. But really, a budget is really permission to prioritize what is important to us, and to make sure we can fund the lifestyle we want. What’s the point of working so hard if you feel guilty for spending money on a vacation, or buying a new phone? Include both necessities and luxuries in your budget so you can stay on track financially and enjoy your money guilt free.
Update your life insurance policies: Maybe $500,000 in life insurance was the right number 10 years ago, but it doesn’t mean it is now. Orange County home prices are up, as well as the cost of living, so be sure your loved ones could still afford to live comfortably and reach their goals if anything should happen to you.
Update your estate plan: Of course, as an estate planning attorney, I must include this. But really, you should be constantly looking at the choices you’ve made in your estate plan, and make sure you are happy with the people you have chosen for those special roles, and that your plan is up to date from a legal and tax planning standpoint. What worked 10 years ago, or even one year ago, may not be what is currently ideal for your family. Call your Newport Beach estate planning attorneys at 949-718-0420 to make sure your loved ones and assets are fully protected.
And last, but not least, if you are like me, you are also hitting the gym now that the rainy sweatpants days are over!
For your family and financial needs, call your friends at the Meier Law Firm, with warm and welcoming offices in Orange County and the San Francisco Bay Area, at 949-718-0420 to start your “spring cleaning” today!