Money Minute: 5 ways to organize your finances this spring

Mandi Woodruff-Santos

WIth tax season well under way, springtime can be the perfect opportunity to bring some order to the chaos of your personal finances.

Here are 5 great places to start:

Consolidate your old retirement accounts. As you move from one job to the next, it’s easy to lose track of where you’ve left retirement money behind. Take the time to go back and figure it out. You could be paying higher fees in your old accounts or missing out on a chance to invest in a wider variety of funds. Not to mention it only gets harder to manage various financial accounts the older you get. Once you know where those accounts are, figure out where you’re moving them. You can either set up a new IRA (individual retirement account) or request a rollover to your current 401(k) plan. Ask your employer if it accepts rollovers and where your old funds should be sent. Then make a list of older 401(k) accounts and contact them to figure out how to initiate the rollover.

Just don’t be tempted to cash out and plunk those funds in your bank account. You’ll get hit with early withdrawal penalties. Once you’ve successfully consolidated your accounts, be sure your beneficiaries are up to date.

Update your insurance policies. At least once a year, run a check on your insurance policies to be sure your beneficiaries are set up the way you want them and that you aren’t over- or underpaying for your policies. Start by making a list of your policies — like renters or homeowners, auto insurance, and life insurance. With life insurance, update your beneficiaries first (for example, you might have gotten divorced but still have your ex listed as the primary beneficiary). If your family has expanded, it’s probably time to increase your policy.

For your homeowners or renters insurance, inventory is everything. Walk from room to room with a camera and snap photos of all valuables, as well as their value (how much it will cost you to replace them if they get damaged). You may find your current policy is too small to cover everything, especially if you’ve made renovations or upgraded your appliances or furniture. If so, log on online or call them to make adjustments.

You don’t have to make auto insurance updates every year, but it’s smart to keep an eye out for better rates every couple of years or so. Use a tool like these from Nerdwallet or Bankrate to compare rates. Then call your current insurer and let them know you’re ready to walk. They might offer a more competitive rate.

Eliminate the paper trail. With tax season upon us, this is a great chance to toss out old documents you don’t need anymore. The IRS recommends hanging onto tax documents for seven years. You can get rid of bank and credit card statements after a year. But why not go paperless and not have to think about it at all? Your lenders and banks should be able to keep track of all your documents online.

Do a credit checkup. Annualcreditreport.com is your best friend. Get reports from all three major credit bureaus and check them for errors. Common errors include misspelled names, incorrect payment history, or, worst of all, finding lines of credit that have been taken out without your knowledge. If you find mistakes, immediately report them to each credit bureau.

Declutter the junk. An organized home can actually save you money. Think about all the times you’ve bought extra batteries, toilet paper or groceries only to find out you had all that stuff lying around anyway? Clear out clutter and keep an updated list of essentials you have on hand. While you’re cleaning out cupboards and closets, look for old clothing, kid’s toys, appliances or electronics you can sell or donate.

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Mandi Woodruff is a reporter for Yahoo Finance and host of Brown Ambition, a weekly podcast about career, life and money.

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