It’s time to roll up your sleeves and crack open a window: Spring cleaning is here! As you sort through your closet, attic, or stack of paperwork, consider organizing your finances too.
Here’s a five-step checklist to set you up for the year ahead:
1. Revise Your Budget: A lot can change in a year. Whether you’ve gotten promoted, had a child, moved, or picked up a new hobby, it’s smart to revisit your income and spending. Make sure your budget accurately reflects your current financial situation, update spending limits, and find ways to save more effectively.
2. Go Paperless: That pile of bank statements on your desk is more than a nuisance; it can be a fraud risk if your information falls into the wrong hands. Switching to electronic billing for your bank account, utilities, insurance, and other regular expenses is not only easier but also environmentally friendly. Plus, you won’t have to sort financial documents from junk mail or shred them.
Monitoring your payments is simple with mobile banking. You can check your balance, review transactions, deposit checks, and pay bills with just a few taps. All your info is protected in an encrypted account.
3. Simplify Payments: Concerned about late payments? Managing them doesn’t have to be stressful. Setting up autopay in your bank account means transactions happen automatically on scheduled dates. Prefer manual payments? You can send money instantly through banking apps.
4. Cancel Unused Services: As you declutter your home, also review your finances to see what you’ve outgrown. Do you have a gym membership you never use or a magazine subscription that just collects dust? Cancel payments for services and features you don’t use, including any expired free trials.
Also, re-evaluate your insurance. Are you getting the best rates? Have your coverage needs changed? Adjusting your plan regularly can save you money over time.
5. Get Organized: A solid financial plan offers peace of mind. Make sure you have long-term savings plans for goals like college, retirement, or an emergency fund, and strategies for debt repayment. Consulting a financial advisor can help ensure you’re on the right path.
The best spring cleaning sets you up for success. Developing smart financial habits gradually will bring you more security, confidence, and peace of mind throughout the year.
