Spring Cleaning your Finances

We all consider spring a time to clean and organize the house, but what about your finances? Spring is a great time to start something new and to get your financial house in order.

It might sound overwhelming to spring clean your finances, but here are a few tips to get you started.

1.    Reduce your Expenses

We are all guilty of letting unnecessary expenses add up throughout the year. Use this time to take inventory of what you have and what you no longer need to pay for.

Pulling your most recent bank and credit card statements and reviewing your expenses is the easiest way. Do you sign up for subscriptions you no longer need but still pay each month? Are you overpaying for certain services?

This is a time, to be honest with yourself and see what you can cut out to save money.

2.    Take Inventory of your Debts

Paying off your debts is a big job that can seem overwhelming. But you can’t create a debt payoff plan unless you know how much debt you have.

Use this time to look at your debts and order them by amount, lowest to highest. This will give you an eagle-eye view of what you owe. Also take note of the interest rate of each debt. Don’t worry if you feel overwhelmed at the amount that lies before you; a free financial credit counseling session will point you in the right direction.

3.    Figure out if you Should Start a Side Hustle

If, when cleaning up your finances, you realize you do not make enough to make ends meet, consider starting a side hustle. Spring is the perfect time to do that because the weather is nicer, and people have more energy to try new things.

4.    Organize your Finances

Finally, consider organizing your finances. Gather the paperwork, receipts, and bills lying around if you have a lot of paperwork. Figure out what you must keep and what can go.

Next, figure out a way to store your financial paperwork so that it is organized and easy to get when you need it at tax time or for bookkeeping.

The least stressful way is to scan your paperwork and create a separate file on your computer. You can also store it in the cloud using Google Drive. Just ensure you password-protect the file, and do not share your password with anyone.

Final Thoughts

This spring, while you spring clean your house, consider spring cleaning your finances. Get your paperwork organized, take inventory of your debts, and track where your money goes. If you find things are more out of control than you realized, consider getting professional help.

Getting help with your finances is empowering. It shows you are ready to make good financial decisions and need someone to point you in the right direction. Consider a free credit counseling consultation to get your finances in order, learn how to pay off your debt, and how to create a budget that works moving forward.