We have officially left the winter woes behind to embrace spring! The windows have been opened and closets will be cleaned to prepare for the upcoming season. It comes as second nature to tidy up our homes, but this same principle can be applied to the tool we manage daily-money. Use the opportunity of a new season to establish, revise or revisit financial goals. Here are some simple tips to help you spring clean your finances:
Make a List
What are some things that you value the most? Creating a “I don’t want to give this up” list helps you to prioritize what matters the most.
..only on the 1-3 finance goals that you set for this year. Be specific. Save how much? Pay off what debt? Invest in what? Boost your credit score by how many points? Get life insurance with what company? Use the rest of the time to educate yourself on other financial matters. Read blogs or listen to financially inspired podcasts.
Are You Maxing Out Your 401K Contributions?
Revisit your 401k contributions to determine if you’re maxing out your contributions. While you may squirm at the thought of more money being taken from your check, view this as a way to save up for retirement while doubling your money. It’s a total win.
Did you try to skip this at the start of the New Year? If so, how has this worked for you? It’s pretty difficult to map out your finances without having some level of indication of what’s happening or should be happening with your money. Sure, budgeting isn’t fun or easy in the beginning. It takes a few attempts to nail down the process. Whether it’s putting money aside for vacations or your normal monthly expenses, budgets teach us how to train our money. I’ve said this before, but I really mean it-please don’t skip this.
Review All Insurance Plans
How many times have you taken a quick look at your health, dental, disability or life insurance plans without fully assessing what your needs are? It’s never wise to take a guess in this area. Make time to get a physical done each year to identify any health concerns that may be looming. You can even take this a step further to better understand what percentage of your salary would be covered if you were out on short or long-term disability. Ask the right questions and get in front of the coverage that you’ll need.
While there are many reasons that you can be denied credit such as insufficient income or having a limited credit history, there should always be an eye of awareness on what could be happening with your credit report. Unresolved mistakes on credit reports can result in higher interest rates or the inability for you to obtain credit when needed. Give your credit report a solid comb over for identity errors, incorrect reporting of account statuses, and balance errors.
Were You Just Charged An Unauthorized Fee?
Stop! Don’t shred your bank statements. Take 20 minutes each month to highlight any possible fees or unauthorized charges that you may have overlooked throughout the month. Every dollar matters.
Health Is Your Wealth
Commit to at least 30 minutes of exercise daily or at least three days out of the week. Regular exercise aids in improving our memory and thinking skills. Are you stressed about life and your finances? Move your body to release stress, boost your self-esteem, and to help you ward off negative emotions or energy that may attempt to trigger your happy thoughts throughout the day.
You are the owner of your financial house. Dedicating time to do check-ins and make minor adjustments results in enjoying the fruits of your labor. What spring cleaning methods do you use to freshen up your finances?