Warmer days have many of us wanting to refresh our spaces and clear out the clutter. But while you’re cleaning up your home and minimizing unnecessary stuff, don’t forget to spring clean your finances, too.
Taking some intentional time to organize your financial life can have major benefits all year long. Here are some tips to take advantage of the season and get your money under control:
1. Check your credit report
Spring is also tax season, which is when we tend to see a spike in identity theft. So while you’re gathering your documents and preparing to file, you might want to look for any suspicious activity on your credit report.
When you’re checking your report, you want to keep an eye out for any errors or suspicious data. For example, are there open accounts that you don’t remember authorizing? Are there names on the account that aren’t yours? Is all of your identity information correct and up to date? Checking everything over at least once a year can help you stay on top of anything suspicious or incorrect.
You can access your free report at AnnualCreditReport.com.
2. Create a better organizational system
Nothing tests your financial organizational system quite like filing your taxes. If you found yourself spending way too much time digging around for lost documents, then it might be time to rethink your system.
If you wished you’d had a more precise filing method, an easier way to track expenses or better bookkeeping software, now is a great time to start putting those ideas into practice. You’ll thank yourself when tax time rolls around again next spring.
3. Review your expenses and get rid of excess
Have you reviewed your subscriptions lately? According to a study, about 30 percent of the subscriptions that Americans pay for are unused.
Review your accounts for the past few months to see what you’re spending your money on. You might be surprised to find how much you can save just by canceling some subscriptions or cutting certain expenses out of your budget.
4. Get automated
While you’re thinking about your goals, help yourself out by making them as effortless as possible. You can streamline your payments, cut down on late fees and stay on top of your goals by automating whatever you can. This is one of those tasks that you might tell yourself you’ll do later but never get around to, so add it to your spring cleaning chore list. You can automate bill payments, savings and investment deposits so your money will go exactly where you want it to, without you even having to think about it.
If you already automate your bills and savings allocations, make sure you take some time to review those to see if you need to make any changes.
5. Clean up your budget
It doesn’t matter how much or how little money you’ve got – it still needs to be managed. And that’s why everyone needs a budget. It’s not about deprivation; it’s about having the peace of mind that your spending is aligning with your needs and goals.
That being said, if you don’t have a budget or you find it difficult to work with one, this is a great time to find a new method. And there are tons of methods out there that will work for your money management style.
Try setting some financial goals or challenges for the summer and work on a budget that will support you along the way. That way, even if you’ve already gotten off track on your resolutions for the year, you can find renewed momentum to implement new habits.
Spring clean your finances to save time and money
Even dedicating a few minutes to improving or simplifying your money can yield major benefits over time. Take that spring cleaning motivation and use it to make your money life as simple and efficient as possible.
Here are some additional posts to help you feel more in control of your finances this spring:
How Decluttering Can Save You Money
Minimalism vs. Frugality: How to Use Them to Improve Your Life
Check These Spring Financial Tasks Off Your List
About Your Richest Life
At Your Richest Life, Katie Brewer, CFP®, believes you too should have access to financial resources and fee-only financial planning. For more information on the services offered, contact Katie today.