Financial Spring cleaning!
Spring cleaning is a very common practice to deep clean the house once spring arrives. It is an excellent time to get rid of everything that no longer serves a purpose or is damaged and veracity which items should be renewed. However, have you considered doing a financial spring cleaning as well?
Although you review your monthly budget, doing a check-up and organization around every element of finances is a task itself. Take advantage of the spring cleaning spirit to do it!
Here are some of the things that you can do to refresh your finances:
Get rid of credit cards that you do not use
If you are one of the people that have many credit cards from different banks, think if it is really healthy to keep them due to the interest that you pay if you can’t cover the monthly debt. This way you will avoid the temptation of divide expenses into different accounts so you don’t feel pressure. It is better to cancel those cards and keep one that you feel safe about paying it on time. Besides, be aware that every month you pay insurance related to fraud and despite not being expensive, you can avoid some cents there.
Allocate any extra money on your emergency fund
That extra money that you have saved in your account could be used to start off with an emergency fund or to increase the amount you have. Take this time to transfer between accounts and make sure that the money you have is not wasted just because you have it.
Review your taxes
If you feel stress out each tax season, it is time to be a step ahead for next year. Make a list of all those things you should pay attention to, go through all the learned lessons and mark it on your calendar to start earlier. In case you have decided that it is better to have an accountant to do the job for you, take this time to do your research and collect all the information you must deliver to that person.
Declutter and sell what you no longer need
Take advantage of your home’s spring cleaning to see if there are things that you no longer use because they might become an extra income. You won’t get the same amount of money you spent when buying an item but instead of keeping a useless product, you can take a few dollars from it that you can use towards your savings.
Organize your finances
To efficiently manage personal finances you must have an organized system that has all the information, whether it is in your computer or in a binder. Review your budget, throw away all the papers and tickets that you no longer need, and make sure all the financial information is updated.
Often, spring cleaning is a one-time per year activity. After deep cleaning your house, go through your finances to welcome the hot weather with everything organized.