New Year's Financial Tune Up Tips

Usually around the first of the year I take a serious look at our finances to fine tune a variety of things. I haven't completed this yet this year, but will within the next week or so. Here are a few tips on what I look at every year. Most, you may have read about before, but it can't hurt to be reminded to get yourself in gear sometimes. 

I start my financial tune up with accessing and saving my credit report with all three major credit reporting companies. This can be done for free at  www.annualcreditreport.com.  I do a quick review to make sure there are no unauthorized accounts or any old accounts that have popped up. Years ago I discovered an old hospital bill that had gone to collections for about $100. I contacted the collection company and found out that the hospital had an address on my account that was very old, and numerous moves ago, so this particular bill had slipped through the cracks. I settled the small debt to have it drop off the reports. I review the report for any credit cards I may need to close. I often open up a new credit card to get free miles or points and then never use it again. This is my opportunity to be reminded to close an account or two.

Next, review your bank accounts you may have and check interest rates on your various options. The bank is not going to call you on your .5% savings account to let you know you can get 2% by switching to another account. I recently checked on our savings account options at the bank. By moving it to another type of savings I went from getting $8 a month in interest to getting about $80 per month. That is a huge difference for just inquiring about what options are out there. Savings rates have jumped a lot since the Fed started raising interest rates. This change took me less than 30 minutes at the bank.

I've mentioned this one before in a post, remember to check your online streaming accounts. There may be an account or two you no longer use and can close. The streaming services are all month to month and can be cancelled and restarted anytime. So, If you have watched all your favorite shows on a service and the next season doesn't come out until next Fall, cancel it. Then, restart next season. 

Review your health insurance plan and make sure you are using all the benefits. Our health insurance is Blue Cross and they have a benefit in which they pay you $50 to take an online health questionnaire and pay you $40 for online coaching and tracking sessions. The online tracking is super easy and covers things like Eat Better, Get More Exercise and Have Less Stress. You just check in online and check a box for being on track, a little off track, etc. Once you meet their set criteria, such as 12 days of exercise out of 30 days, you complete the task and get $40. Blue Cross will allow you to complete 3 of these session resulting in you being paid $120. The amounts are put on a Debit card that can be used for health expenses including co-pays and prescriptions. Not a bad way to get a free $170 per person. Our health insurance also has a program where you can get a free blood pressure cuff and a free blood sugar testing device if your health situation would require monitoring in those areas. 

Review your home and auto insurance. Some people purchase the coverage and then never review it. My wife's parents have had the same insurance for 50 years or more. I guarantee you that if they had shopped for insurance every year or two they would have saved thousands of dollars. If you compare every year or so, you can save hundreds of dollars each year. 

I have never shopped around for better health insurance. I have been happy with Blue Cross and feel like it is well worth what I pay. I know some people who shopped their health insurance and then were surprised about the difference in co-pays, in network doctors, etc. I am content knowing my insurance is good and don't want to mess around with it. I did make one change to my health insurance. My son will be 26 this year and would be off my insurance and he just got a new job that pays 100% for his health insurance. So, during open season, I changed our plan from family to self plus one. This saved about $50 per month and we still have our very same coverage. So, if you children have aged out and are off your insurance, make sure you see if you plan has a self plus one option that is cheaper than the family option.

Review all of you financial and investment accounts and make any adjustments as needed. This would be a good time to change asset allocations or change your withdrawal rates on you retirement funds. This is also a good time to review your important documents and make sure they are up to date and secured in a place where you and your spouse know about. In your review, check passport expiration dates, life insurance expiration dates and make any changes to your will and other legal documents. 

I hope you can benefit from at least one suggestion I've listed here. If nothing else, I have reminded you to get busy!

Do you have any other financial tune up tips to share? Does your health insurance offer similar benefits to what I discussed? Take a few minutes to tune up your finances and then sit back and enjoy 2023!