Spring cleaning has always been the time to flip mattresses, clean windows, and get behind or under those appliances to see what’s been growing during the winter. This is also a great time to purge old or unwanted items from your home. Personal files and financial documents also deserve some attention. Here are a few things to consider for this year’s spring cleaning.
Financial Affairs
The first financial spring clean task is to take a look at where your money goes each month. Your budget probably needs a tune up, and this is a great time to tackle the job. Consider where you are spending the majority of your money and decide if changes need to be made.
If you don’t already have a monthly budget, create one. There is no reason to go overboard here. Keep your budget simple so you will be able to stick with it each month. Be willing to make changes if you see that you have forgotten something or are having trouble making ends meet. A budget is supposed to make it easy to control your monthly finances. It should not be too strict or overly generous. Neither of these approaches will provide sound guidance for your financial future.
Auto Pay Services
Banks and financial institutions offer many products and services such as autopay, intended to avoid late fees, automatic payments help take care of recurring monthly bills. Take a look at your current auto pay settings. Determine which ones are still relevant to your daily lifestyle. You may have forgotten about some items that automatically renew each year. Sort out payments and review your bank statements to make sure you are not missing anything.
How many and what kind of payments are being automatically deducted from your checking or savings account each month? The financial spring clean event will help you reduce clutter in your financial accounts. If you find a subscription fee for a magazine you haven’t read in years or is no longer relevant to your lifestyle on your auto pay list, it’s time to make a cut. Gym memberships and utilities are worthwhile auto pay options.
Develop a Savings Plans
Your financial health depends heavily on your ability to save. Both short and long term goals require consistent effort. Finding extra money to begin a new savings plan may seem impossible. If you have gone through your auto pays and turned off ones that you don’t use, you have probably discovered some cost savings. This and other small ways of saving can produce substantial long term gains.
Final Review
The final step in your financial spring clean plan is to review your financial assets in regard to your future. You should be proud of your accomplishments! You created a budget, sorted through auto pays, and even found ways to save or invest your leftover funds. Ask yourself what you want your savings to accomplish for you in the future. Are you on track to meet college savings plans or your retirement goals? Take the time to review these figures and educate yourself on what is needed to keep moving forward.
Your spring cleaning helps you set the tone for the rest of the year. The financial progress made now will carry over and help you work toward a bigger goal. Take advantage of free online tools like calculators and investment education pieces. Use this information to put yourself in a better position for next year. Then your spring cleaning will be shorter and even more rewarding.