Have you found yourself Googling “how do I clean up my finances” far too often? If so, we’ve compiled a list of the 7 top tips for financial spring cleaning that you can use to make things much easier. These will ensure you’re always in the best financial shape possible, so let’s get started!
How do I clean up my finances?
1. Evaluate your budget
The first step to spring clean your finances is to create a solid budget for yourself. You may already have one in place, but you need to evaluate and update it regularly to ensure it’s optimized for your current financial situation. Think about your spending patterns and where you might need to spend less money.
2. Sort out your bills
Sorting out your bills involves evaluating them to ensure you’re not paying any you shouldn’t be paying. Once you’ve done that, make sure you have a payment system in place that means you never miss a bill payment, avoiding any extra fees. This is especially important if you split bills with other people, as it can often get confusing if there are a lot to pay.
3. Set up a debt-elimination plan
If debt is weighing you down, but you can’t afford to pay it all off right now, set up a debt-elimination plan. This could be over the next few weeks, months or even years. Setting up a debt repayment plan can give you peace of mind, while also ensuring you pay off your debt in a fast yet financially stable manner.
4. Cut out bad spending habits
Along with evaluating your budget, you should be looking for areas where you could be cutting down on unnecessary spending. Think about snacks or coffees you don’t need, or services you’re no longer using but don’t want to stop paying for “just in case”. This is the easiest way to free up some extra money.
5. Sort out your credit card debt
Sorting out your credit card debt doesn’t just have to mean paying it off. You might be able to transfer your debt from one card to another, with the result being lower fees. 0% balance transfer cards are a popular option, but it could be worth simply switching supplier to make use of lower annual fees or better interest rates.
6. Cut out the clutter
Switch to a paperless accounting system, and set your finances up with an app. This is a fairly simple tip but cutting back on the amount of paper involved will make your life much easier. Going digital is a sure-fire way to streamline your finances.
7. Plan for the future
The final step to spring cleaning your finances is to think about your future. You could choose to invest the maximum amount into something like an IRA or 401(k). Or you could simply chase up your employer to make sure they’re contributing the maximum amount possible. Just make sure that you can afford it if you’re looking to increase your personal contributions. While planning for the future is key, you don’t want to put any unnecessary financial strain on your current situation.
