Six Steps to Spring Clean Your Finances

Steps-to-Spring-Clean-Your-Finances

Six Steps to Spring Clean Your Finances

Instead of climbing those walls at home, how about cleaning them? Spring cleaning is a great way to clear the clutter, both mentally and physically. And hey, why not take it a step further this year and tackle cleaning up your finances too? Chances are your finances could use a bit of tidying up and there is no time like the present to get to it - especially since most of us are staying close to home these days.

Not sure where to start? We’ve broken it down into six simple steps:

  1. Start with the junk drawer. You know the one; it has faithfully held your old credit card statements, receipts, financial records and paperwork. Now is the time to reach in and bring it all out. If you run your own business or need to hold onto specific items for tax purposes, make sure to set these aside. As for the rest, (safely) toss what you no longer need. You’d be surprised by how fast it accumulates.

  1. Get it ALL together. That’s right, round it all up - bank account info, credit or debit cards, any debt you’re carrying, investments, budgets you’ve created, etc. Having it all in one place will help you sort through everything you have and help you to decide what you no longer need.

  1. Eliminate what you don’t need. Can you merge your bank accounts? Move statements to online? Cancel subscriptions you no longer use? Look through and assess what you don’t need and where you could make changes. Take a look through your credit cards, however proceed with caution. Canceling a credit card could lower your credit score - which could hurt you if you’re looking to apply for a loan or mortgage in the near future.

  1. See if there is something better out there. Now that you’ve determined what you don’t need, take a look at what you could possibly need. Is your savings account giving you the best possible interest rate? Are you invested in a way that makes you feel comfortable? Do you possibly have too few bank accounts and need to add in a healthy emergency fund? Do your homework, look around and find out what is right for you.

  1. Set financial goals. There’s nothing like spending your time inside dreaming about what you’ll be doing on the outside. Write those goals down. Do you want to retire early? Are you looking to eliminate your student loan debt? Think about where you want to financially be in 10 years, 20 years, 30 years and beyond.

  1. Set a new budget or path. You’ve got your goals, now how are you going to get there? Setting up a new budget might be the direction you need to go or you may need help climbing out from under your student loans. Know your path and tap into the resources that you need to get you where you want to go. Check out our easy to use online budget planner to make a monthly or annual budget and track your income and expenses: https://www.bromwichandsmith.com/tools/budget-planner.

Happy Spring Cleaning!

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