Spring cleaning extends beyond tidying our homes; it presents a valuable opportunity to declutter and organize our finances. For athletes, managing finances effectively is crucial for long-term success and stability, and now is the perfect time to refresh your money habits. Below are ten ways athletes can clean up their finances this season:
10 Ways Athletes Can Spring Clean Their Finances
- Organize Financial Documents:
- Gather all financial documents such as bank statements, tax returns, investment statements, and insurance policies.
- Create a filing system to organize and store these documents securely.
- Doing this not only keeps you organized, but sets you up for success & keeps you organized before making a big purchase like a home or investment property.
- Review Bank Statements:
- Go through bank statements to identify any unnecessary expenses or recurring charges.
- Cancel subscriptions or services that are no longer needed. Reviewing our statements in the past helped us eliminate a few subscriptions we didn’t use frequently, such as our cable subscription.
- Keep Tax Statements Accessible:
- Hold onto tax statements and documents for at least six years, as the IRS can audit returns within this timeframe.
- Store tax documents in a secure location, either digitally or in a fireproof safe.
- Secure Important Documents:
- Safeguard essential documents such as social security cards, birth certificates, estate documents, and military discharge papers.
- Consider storing copies of these documents in a safe deposit box or encrypted digital storage.
- Having these documents all in one place is good practice and can be super helpful in case of an emergency.
- Review Budget and Expenses:
- Evaluate current spending habits and create a budget to track income and expenses.
- Identify areas where expenses can be reduced or eliminated to improve financial stability.
- Check Credit Reports:
- Obtain free credit reports from major credit bureaus and review them for inaccuracies or suspicious activity.
- Dispute any errors found on the credit report to ensure accurate credit information.
- Staying on top of credit reports can help you quickly address suspicious and keep you out of financial trouble long term.
- Update Beneficiary Information:
- Review beneficiary designations on insurance policies, retirement accounts, and investment accounts. This is important if you’ve had a major life change recently, such as getting married or if you had a child.
- Update beneficiary information as needed to reflect any changes in personal circumstances or relationships.
- Evaluate Investment Portfolio:
- Assess the performance of investment accounts and review asset allocation strategies.
- Consider rebalancing investment portfolios to align with long-term financial goals and risk tolerance.
- Plan for Major Expenses:
- Anticipate upcoming major expenses such as taxes, insurance premiums, or home repairs.
- Set aside funds in a dedicated savings account to cover these expenses without disrupting regular cash flow. Putting the money aside now can also prevent you from overusing credit cards.
- Consult with Financial Professionals:
- Seek advice from financial advisors, accountants, or estate planners to address specific financial concerns or goals.
- Utilize professional expertise to optimize financial strategies and maximize long-term wealth accumulation.
By following these ten tips each spring, athletes can take proactive steps to improve financial health, minimize risks, and lay the groundwork for a secure financial future.