If you have ever spring cleaned you know that a sparkling clean and clutter free home is a great feeling; which is why the end result makes the entire process worth your time and energy.
As with your home, if you spring clean your finances you will not only feel a sense of accomplishment but you will set yourself up for financial success.
Follow these tips to clean the cobwebs out of your bank account:
đź•° Pick a day when you have the time to focus on this task. Grab your checkbook register, account login information and any hard copies of bank statements and/or bills that you do not have access to electronically.
🎯 Refresh your financial goals. Create or update your short term and long term money goals. Knowing what you are working towards will not only motivate you it will keep you on track.
🌹Wake up and smell the roses and get off of autopilot. Go through your accounts to see where your money is going. Beauty, coffee runs, eating out and subscriptions are often the categories that you are overspending on. We are creatures of habit and are comforted by our routines. Switch it up! Be mindful about where you are spending your money. Choose to be intentional instead of choosing your routine.
🚨 Kick unused and unwanted subscriptions to the curb. First list all of your subscriptions. Seeing a comprehensive list may surprise you. It may also surprise you that the fee’s have changed without you even knowing about it. Only keep the subscriptions that you use and truly add value to your life. Auto pays and auto deliveries are so automatic that we don’t even question if we still want this “thing” in our lives. Spring is a great time to reevaluate everything “auto” in your financial life.
đź’» Adjust your tax withholding if needed. If you overpaid and are getting a refund or owe the IRS you will want to ask your tax professional how to adjust your income tax withholding to break even. Loaning Uncle Sam interest free money is no benefit to you. Bigger paychecks will allow you to reach your financial goals sooner and prevent you from blowing through your tax refund money each spring.
đź’¸ Split your direct deposit so a portion goes into a savings and/or investment accounts. This simple clerical change can add hundreds or thousands to your savings or wealth building accounts each year.
🛍 Shop around. Review insurance policies to make sure you are properly covered. Then shop around and compare to find savings.
📱Use cash apps like Venmo or PayPal? Don’t leave money hanging around in these apps. Transfer the funds to your banking account so you can apply the money towards your financial goals.
đź“ť Start budgeting. Now that you’ve gone through your finances use this information to create a zero-based budget. Start telling your money where you want it go. It is empowering to be in control of your finances versus letting it control you!
Life can be messy and hard to clean up at times but that’s no excuse to stick with the status quo. You will be glad you put in the effort to clean up your finances. By implementing these tips you’ll take yourself off of a hamster wheel and onto a path towards a brighter future.
~Christine Spiak
