When it comes to spring cleaning, you may think about your garage or even your closet. What you may not consider is your finances.
When’s the last time you really took a good look at them? What if you could get a better interest rate or consolidate to save money? While you’re cleaning the windows and tossing out old clothes, also make time to spring clean your finances.
Track Small Expenses
Have you ever wondered how much you’re spending on those “must-have” items? Take the time to track those unnecessary expenses to see how much money you’re really spending. For example, a cup of coffee at your favorite café each morning and a fast food lunch is only around $10 a day. Big deal, right? Not exactly.
Think about how just $10 adds up over a 50-week work year. That’s $2,500 a year for just a cup of coffee and a greasy burger and fries. You could take a vacation for that (or pay off debt)! This spring, get rid of those expenses that are eating up your income.
Pay Off Debt
Another great tip is to pay off your debt once and for all. Sit down and look at how much you owe. What would it take to get you out of debt?
If it’s $5,000 or less, you could probably come up with the money by selling items around your home and doing some side gigs to make a bit of extra money. If it’s more than that, you may have to look into some serious sacrifices of your time and play money for a period of time.
Cancel Subscriptions You Don’t Use
Look over your statements and ask yourself if you’re using each service you’re paying for. Are you really using your Kindle Unlimited subscription? Could you get by with the thousands of free books that are available without the subscription? Are you using every TV service you’re paying for? What about that gym membership? Cut anything you don’t use.
There are a number of things you can consolidate. You can consolidate your credit cards, debt, even your bank accounts.
Do you really need ten savings accounts? Probably not. Not to mention that paying one payment for debt is easier and more effective than paying on multiple accounts (unless the bigger number makes you feel overwhelmed…then keep the smaller debts and pay them off smallest to largest).
Toss Paperwork You No Longer Need
Paperwork is one of the worst things to deal with when spring cleaning. It seems to slow you down as you’re trying to get your cleaning done. Instead, gather it all up and go over it all at once.
Toss anything that you no longer need. Some paperwork needs to be kept a few years for tax purposes. Other things, like bank statements, can be scanned and stored electronically. Just make sure to have a backup of your backup.
Get a Better Bank Account
Last, but not least, while you spring clean your finances, look into different banks. You want a bank that has zero fees and good interest rates. Always read the fine print so there are no hidden surprises down the road, such as a minimum balance.
Spring cleaning your finances probably wasn’t on your to-do list. However, it can make a big difference in your life. Take the time to spring clean your finances this year.