Spring has sprung and there’s no better time to do some reorganization, both inside and out of the home. Considering the average credit card balance was, according to Experian, $6,194 just last year, most of our finances could probably use a little spring cleaning! Whether your budget is gathering cobwebs or you’re up to your ears in pay stubs circa 1999, here are 8 easy steps to potentially help you improve finances and KonMari your accounts!
Dust off your budget
Be honest, when was the last time you busted out your budget? According to the Consumer Financial Protection Bureau, budgeting is “a key step towards getting a handle on your debt and working towards a savings goal, of any kind.” With a new season blossoming, why not give your budget new life? Update your income, begin tracking expenses, and brainstorm ways to reduce expenses.
Tidy transactions to potentially improve finances
Save your spare change by making all transactions a nice, clean number. Many banks and financial institutions offer a round up savings program in which all purchases are simply rounded up. For example, if you were to spend $19.50 on groceries, 50 additional cents would be deducted, and automatically transferred to your savings account. Explore options with your financial institution to really see your green grow!
Wipe down debt
Financial freedom could be blooming this spring so, in the spirit of new beginnings, set up a debt repayment plan. One popular method is paying down high-interest debt first, in order to save more money in the long run. You could also prioritize the smaller loans, via the snowball method, if the emotional kick of knocking a few debts out early is worth it to you. You may not be able to kick all debt to the curb this spring, but committing to that first step could lead to lasting change.
Throw out old processes
Did you miss a credit card payment in all the chaos of Christmas shopping? Or, have you been dipping into your savings for non-essentials? Either way, sticky notes or mental notes may not be cutting it. Consider enlisting in auto pay, consolidating bills or creating a calendar to track due dates. According to Investopedia, taking control of your financial situation, each month and on time, could save you credit score points, late fees and more this spring.
Scrub your wallet
Do a deep clean to limit the number of cards you carry. Cutting back on credit cards makes tracking purchases and balances that much easier, significantly simplifying the payment process.
Clear out old financial documents
Depending on the nature of the documents, you may need to declutter some folders, drawers or even boxes! According to Consumer Reports, ATM, bank deposits and credit card receipts may be able to be tossed after a year, while you might want to hang onto tax returns for at least seven. If you have outdated documents, be sure to shred them before disposal or, at the very least, use a marker to scratch out any personal information. If you’re interested in going green this spring, or simply saving on shredding, also consider going paperless!
Freshen up financial apps
Apps like Mint, YNAB, Goodbudget and other Forbes favorites have financial freedom going mobile! Now, with just the touch of a button, you may be able to easily and conveniently take greater charge of your personal finance habits. Do some research on the features, pros and cons of each, determine which best fits your needs and simply download! And, of course, commit to using your newest app addition to its full potential…
Polish future financial plans
Thinking of investing, making a career change or becoming a homeowner? Change is in the air, and there’s no better time to polish any future financial plans you may have. Research costs, consult your budget, and consider speaking with a professional to make your fresh financial plans a reality!
When the dust settles…
Whether giving your budget some TLC or breathing life into a down payment fund, the potential to improve finances is buzzing this spring!
Published on March 9, 2020
