Your Summer Cleaning Checklist: Finance Edition

Hooray—it’s nearly summer vacation! 

The kids are almost out of school. The weather is sublime. The last thing you want to be worrying about? Your finances. Clutter, on any level, can increase stress, prove detrimental to your productivity, and keep you from achieving your goals. 

So, let’s get this all straightened out. The time of spring cleaning has passed, so here’s your Summer Cleaning Checklist: Finance Edition.

Goodbye, Shoebox!

Let’s be honest with ourselves. Who thought it was a good idea to store important financial documents in a shoebox? This method is outdated… At LifeHound, we’d never endorse putting your documents into a giant pile (which is essentially what the shoebox method does!) for “organization” purposes.

Instead, go through each document and ask yourself: Can I opt for paperless billing or statements instead? Save a couple of trees, why don’t you!? Paper can add up quickly, and it’s likely that all of those documents you’re saving to “look back on” actually won’t see the light of day again.

Having trouble deciding which to go? Take Charge America recommends reading, in detail, your bills and account statements. As they say, “The fine print really does matter. You should review all financial documents for mistakes, fraud or term changes.” Reading your bills and statements in detail will help determine what financial documents are actually necessary to keep versus what is not.

Utilize file folders, spreadsheets, and organizational apps like LifeHound for your must-keep documents. Make sure to back up all of your important documents digitally using an app (like ours) before you file them away. 

Then, shred everything else. How liberating!

Next, evaluate your accounts. Are there ones you’re not using? Bank or credit? If so, consider the annual fees you might be paying to keep them open, then consider closing them if the spend isn’t justified.

Want an extra life hack? Throughout the year, gather and store all tax-related information in one file. No one wants to be searching high and low at the last minute for their important tax documents!

Budgeting and The Power of “Unsubscribe”

If you didn’t tackle it during your spring cleaning, summer is the perfect time for a budget refresh! A budget that is not only realistic but also balanced is the number one thing you need in your financial toolkit for success.

If you don’t already, track your expenses. Are you spending outside of your means? Where can you cut back? Does your income justify having five separate streaming services? (I know… we all love Disney Plus!) It’s time, however, to cancel the subscriptions you don’t need or use.

Take things a step further by unsubscribing from any promotional emails that you haven’t and don’t intend to ever open. Digital clutter can be just as overwhelming as physical.

Lastly, when it comes to refreshing your budget, be sure to factor in tax bills, unexpected emergencies, and future trips. Take a hard and honest look at your current finances and think about where you want to be in five years. Are your current spending habits leading you to that goal? Make sure to document your budget in the LifeHound app for maximum organization.

As far as your email goes, you might also consider creating a special-purpose email account for your finances. Here, you can set up a specific email address to receive any sensitive information. For example, bills, banking, and financial statements or applications.

Who Are Your Beneficiaries?

Honesty hour: When was the last time you asked yourself this question? At LifeHound, we recommend regularly reviewing any estate documentation and beneficiaries. Life is unpredictable, so you want to be sure that your wishes are still being thoughtfully represented at all times.

Life, Auto, Homeowner’s, Oh My!

There are a wide variety of insurance policies available to any single person. Life, disability, homeowner’s, auto, health, the list goes on. Just because you have these policies, however, doesn’t mean they aren’t flexible. Update them based on your current needs and lifestyle!

Consider the COVID-19 pandemic. With encouraged stay-at-home orders in place, many people found themselves driving much less, if at all. Do you think society considered how this might influence their auto insurance policies? For those driving less, perhaps they could qualify for a better rate! 

Or, did you just complete an add-on or home renovation? Consider updating your homeowner’s coverage. You might save some change in your pocket! Now is the best time to review your policies, before things ramp up in the summer.

Surprise, It’s Tax Time!

The one thing people dislike more than tax season is a surprise tax bill. Have you considered how your tax withholdings affect your finances? Take some time before the summer starts to review any changes that might have occurred in the past year in terms of assets, income, and/or family. Then, update your tax withholdings accordingly.

The Future of Automation

With the surplus of technology we can access today, automation is a no-brainer to get your finances in check. No one likes late fees or penalties, so there are many ways you can ensure you don’t miss a bill or payment. 

Most banks and credit unions offer auto-bill programs, automatic deposits into your savings, and other bill-paying systems to help automate your financial transactions and simplify your life. If you prefer paying your bills yourself, make sure to set aside a date and time each month to complete this task.

Regardless, whether you prefer to pay your bills online or offline, yourself or using automation, LifeHound makes it easy to set up reminders to make sure you never miss a payment!

Where Do You Stand Today?

Clutter makes it difficult to see where you stand in life—especially when it comes to your financial goals. Clutter accumulates over time, which is why cleaning needs to be done periodically. (As much as we wish it did, the mess doesn’t go away on its own!)

Setting aside some time each week or month to clean up, however, goes a long way. But think, when it comes to your financial Summer Cleaning Checklist, it’s not all about decluttering. The summer fun begins when you evaluate and take inventory of your financial goals!

Ask yourself questions and reflect: What do you want out of your financial life? What type of person do you want to be, and how can your organizational habits support this lifestyle?

At LifeHound, we don’t like clutter. We believe in making financial organization secure, automatic, and simple—which is why our app is available to you to download for free. No gimmicks or credit cards required. Sign up for your free trial of LifeHound today to see how easy your summer decluttering can really be, and happy summer!