The concept of spring cleaning usually references re-organizing your closet, dusting shelves, and removing unused items from the home. But you can also spring clean your finances. If you’re not up to date on your financial plan, you might find outdated strategies, once helpful, are now costing you savings.
Check out these 9 ways to spring clean your finances to potentially set yourself up for a positive financial year.
1. Dust Off That Budget
Grab that budget you put together at beginning of the year. Make sure it still aligns with your current needs and goals. Did your income change? Do you have new savings targets? Adjust your budget accordingly and set clear financial goals for the months ahead.
2. Cut Financial Deadweight
We’ve all signed up for free trials that turn into paid monthly subscriptions and then forgetting that they even exist. Re-examine your bank statements and online accounts for recurring charges on services you haven’t used in months. Cancel those memberships and reclaim valuable financial breathing room.
3. Consolidate Financial Accounts
It’s easy to get confused when you have multiple checking accounts or credit cards you no longer use. Even the most financial conscientious amongst us will forget about a dormant investment account. One way to help clear up your finances is by consolidating some of these accounts. This would reduce your paperwork, streamline payments, and potentially earn you bonus rewards or interest.
4. Get Rid of Paper Documents. Go Digital.
Stop paper clutter from piling up. Dispose of old bank statements, tax documents, and receipts you no longer need. Shred anything expired or outdated. If you haven’t already, opt for paperless billing. Many of these documents come in a digital version and can be filed on your hard drive.
5. Review and Renegotiate Bills
With the beginning of spring, be on the lookout for lower rates and seasonal promotions. Contact your insurance providers, cable companies, and other service providers to negotiate better deals or even explore cheaper alternatives. You might be surprised at the savings you can find.
6. Address Your Debt
No one strives to have debt, but it happens. Tackle overdue bills head and high-interest debt head-on. Consider debt consolidation or refinancing options to lower your interest rates and simplify a potential repayment plan. Also, the most important facet of getting out of a hole is to stop digging. Curb your spending to make those debt payments pack a bigger punch.
7. Sowing the Seeds of Savings
Assuming you’ve handled any major debt concerns, spring could be a good time to boost your savings. Try increasing automatic transfers to your savings accounts. Maybe set aside money every week for a small financial goal. You’ll be amazed with how quickly your savings can grow with minimal effort.
8. Check that Portfolio
Might as well review your investment portfolio while you’re in the spring-cleaning mode. Make sure your choices align with your risk tolerance and financial goals. If needed, rebalance your portfolio and consider diversifying into new asset classes that might benefit from the spring market trends. Probably best to consult with your financial advisor as well.
9. Celebrate your financial progress
Spring cleaning is a journey, not a destination. Acknowledge your progress, no matter how small. Treat yourself to a reward for reaching your financial milestones and maintain a positive attitude along the way.
By following these 9 ways spring clean your finances, you can give yourself a fresh start and potentially set the stage for robust and healthy year of personal finance.
