4 Ways to Organize Your Finances
The start of the year is always a good time to take stock in your financial situation and see where you can make improvements.
Even if you think you’re on solid footing, these are always smart steps to go through to make sure you’re taking advantage of all the opportunities afforded to you.
Centers Healthcare has a look at five ways to make your finances more secure into the new year and the future.
- Donate Smart
Up to $300 ($600 per couple) of nonitemized cash donations can be deducted in 2021, and of course, you can itemize other charitable deductions as well. In addition, people over the age of 70.5 can donate directly from a traditional IRA.
- Cut Down on Paper Clutter
Go through your filing cabinet and collect financial documents that you no longer need and shred them (office store companies will shred documents if you don’t have one). Then go to your online accounts and choose the paperless option, as all of the information that you need is online.
- Check Flexible Spending Account Rules
Whether it’s through an employer or Medicare, money left in flexible spending accounts (FSA) may expire, whereas others rollover a certain amount of funds. Check your plan to see what options you have, and then set a reminder to spend that use-it-or-lose-it money on new glasses, healthcare equipment, or even some plans allow it to be spent on over-the-counter medication and other items like first aid.
- Review Your Legal Documents
Check to make sure your life insurance policies won’t be expiring in the coming year or renewing at a higher rate. Also check to make sure your will, power of attorney, and estate-planning documents continue to reflect your wishes, as things may change over the years and then you forget to have these documents updated.
