Spring is a time of new beginnings and fresh starts. While your finances don’t start over, they do change slightly year to year. If you’re looking for a productive project to stay busy while you self-quarantine, then get rid of financial clutter and enjoy the peace of mind a clutter-free existence brings.
Eight Simple Ways to Spring Clean Your Finances:
- Take a Financial Inventory- think debts, assets, income streams and FSA/HSA balances
- Scrub Your Budget – analyze your monthly debt/income ratio; save money by cancelling unused monthly subscriptions or services
- Automate Savings – regularly deposit cash into your savings account from your checking; choose the dollar amount and frequency, then watch your cash reserve grow over time
- Automate Bill Payments – if you have a reoccurring bill like a mortgage or car payment, then think about signing up for automated payments; you’ll avoid late fees and earn the potential to maintain or improve your credit score
- Go Paperless – remove messy piles of paper by signing up for paperless statements, then organize (or shred) records you may have stock piled over the years
- Check Your Withholding – make sure enough withholding is being taken out of your paychecks to cover potential tax liability
- Create or Update Estate Plan – if you want to protect your assets, business and/or beneficiaries when you’re no longer are able to do so, then you’ll want an estate plan
- Reassess Retirement Contributions – maximize your 401(k) employer match and automate contributions per pay period – remember saving for retirement is a marathon, not a sprint
Getting your income and expenses organized is the best way to take control of your finances. This will allow you to plan appropriately for the future, set goals and eliminate the stress of the unknown.