2020 has been a crazy year for all of us—and if you’ve decided that you want to get your finances in order, before the year comes to a close, now is a great time to do it. The good news is that getting your financial house in order isn’t nearly as complex as you might think.
Order a copy of your credit report
Most experts agree that people should review their credit reports at least once a year. And, since federal legislation requires that each of the major credit bureaus provide people with 1 free report every 12 months, you can order yours without an out of pocket expense.
When you review your report, make sure it doesn’t contain errors that could keep you from opening new lines of credit (or getting the best possible rate on a car or home loan). You’ll also want to be on the lookout for credit card accounts you never applied for, and whether your credit report has been pulled by merchants who you’ve never done business with.
Evaluate your insurance coverage
If you can’t remember the last time you evaluated your renter’s, auto, homeowner’s or life insurance coverage, now is the time to do it. Although no one likes to think that a disaster could strike, carrying the proper (and right amount) of insurance can protect you in the event you need it. When you speak with your insurance agent, ask if disaster and flood coverage are included as part of your policy. If not, ask them what’s available for the area in which you live.
Set up an estate plan
Most people assume that having a will is the same thing as having an estate plan- but this is not the case. For example, whereas a will might stipulate that you want to leave your business to your adult children, an estate plan establishes how your assets will be secured, preserved, and distributed once you’re gone.
Estate plans aren’t just for retirees and the wealthy. They’re a good idea for anyone who has built some wealth (through stocks, bonds, property ownership, etc.), who wants to protect their assets from irresponsible spending (or their beneficiaries’ creditors), upon their death.
If you’re interested in learning more about how you can get your finances in order, or you’re interested in learning more about how one of our seasoned CPAs can help guide you in setting up an estate plan, call Hughes, Snell & Co., PA today to get started.