Every spring, people make it a point to clean up their homes both inside and out after the long and dirty winter. But do you conduct a spring cleaning to put your financial house back in order? If you do not, you should. Warmer weather, sunnier days, and more light can provide you with the motivation that you need to get started.
Here are 5 to-dos that should be on your spring cleaning financial list:
- Clear the clutter—Just like your home can get filled with many things you do not need, so can your financial life. If you have papers that have been kept beyond their expiration date, gather them together and shred them. If you have stacks of papers that need to be filed, do it. If you have papers that need to be entered or filled out, do it and send them on their way. A more organized space will inspire you to tackle other challenges.
- Check out your financial status—If you have been ignoring your checkbook, now is the time to reconcile it. If you have numerous bank and investing accounts, take the time to review your statements and log into your online accounts to see where you are at. Taking a little time on a regular basis to review your financial state can provide you with a clear financial picture on where you are at and how to move forward.
- Check your credit—If you rarely check your credit, now is the time to see where you stand. Checking your credit report and/ or score can be useful to determine if you have been a victim of fraud, if your credit contains incorrect information, and what you can do to improve your standing. If you want to find out how to view your credit for free, check out this recent post.
- Review your expenses—If you have been paying for various bills without giving it a thought, now is the time to review these expenses in detail, whether they are utilities, technology, insurance, memberships, or subscriptions. Determine how you can reduce them or eliminate them in order to save money over time.
- Review your budget—If you already have a budget, review and update it to determine where you stand financially. If you do not have a budget, delay no more—make one. Look at how much that you make, how much that you spend, and how much that you save, and determine where you can make improvements. Using this information, set goals that can be met over time.
As you are thinking about sprucing up your house this spring, don’t forget to clean up your finances. Spending even a little bit of time on your financial situation can reap rewards that will be noticeable over time.
How will you be cleaning up your finances this spring? Please share your spring cleaning plans and tips with us.