Harness the fresh, new energy of spring this year to clean not just your windows, but your finances too! If you’ve never included your finances in your spring-cleaning routine before, imagine having that sense of satisfaction and accomplishment, that sense of knowing every nook and cranny is looked after, that fresh outlook… about your money!
Here are a couple of tips that will have you on your way to squeaky-clean finances.
1. Tidy up old papers. Shred papers that have outlived their use, scan and save digital copies as needed, and organize any papers you’re keeping.
2. Check your credit report. You want to not only keep an eye on your credit score but also keep an eye out for inaccurate information or potential unauthorized activity.
3. Review your monthly budget and recurring expenses. This is a great time to evaluate whether you need to cancel any subscriptions, compare rates, or switch companies. Remember to include irregular expenses in your budget like vet bills, annual vehicle registration, and gifts as well.
4. Review your debts, savings, and accounts. Check your balances, and scheduled payments and transfers; make any adjustments you need. Sign up for electronic statements, autopay, or scheduled transfers that will make your daily life simpler.
5. Think ahead. What upcoming expenses can you foresee? Planning for an aging roof, broken sidewalk, or a new teen driver will reduce your stress and help you come out ahead in the long run.
6. Review your financial goals and strategies. Do you need more money in your emergency fund? Saving for a new car? Paying down debt? Saving for college? Investing more money? Align your budget and actions with your goals to make progress over time.
7. Review your tax withholdings, health and life insurance policies, and retirement contributions.
8. Rebalance your investments. Evaluate whether to change your asset allocations, move money from savings accounts into higher-yield accounts, or change your contributions.
9. Put your plans into action and schedule your next financial review!
Sources: experian.com & moneycrashers.com
