You plan what you will make for dinner and you plan your vacation. You may have spent months planning for your wedding or a fancy party. Proper planning results in success. The same is true when it comes to your finances.
Prepare for taxes. If you dread doing taxes, take away your fear with a handy set of file folders or a single accordion file. Hang on to the receipts you collect during the day (jot a note on the ones that might be deductible), then slip them into the appropriate slots. If you make this a habit, all you’ll need is about 15 minutes to pull the information together to file your taxes next year.
Create an emergency fund. Life is full of surprises and ultimately unplanned expenses. Keeping a personal stash can save you from financial ruin in the event of an unforeseen illness, accident or layoff.
Make a will. If you haven’t already done this, stop putting it off! At the very least, you need a will and a Health Care Power of Attorney, which authorizes a person you name to make health care decisions for you if it becomes necessary. And if you have minor children, you need to name a guardian. It’s a simple process that will pay back with peace of mind. Make an appointment with an attorney who specializes in end-of-life issues.
Scan important documents to CD. Could you put your hands on all your important papers? Even if you know where they are, chances are your insurance policies, birth certificates and tax records are scattered about. Make life easier by taking time to scan all of your documents into your computer, then store them on CDs. Keep a copy for yourself and send one to a trusted friend or relative.
Tags: emergency fund, financial documents, financial plan, power of attorney, taxes, will
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