Financial Spring Cleaning! Why do I Need it?

Just as much as you would pay attention to your drawers and closets for spring cleaning, it is important that you look into where your finances stand.

Organize Yourself for a Better View

As tax season comes close, you can’t just spend the last month scrambling and leave your documents in disarray. You should make a habit of using a show box where you toss in all your receipts that you have for the year, and reserve a drawer for the documents that you will need when you prepare your taxes. Organizing everything and making sure that you have all the necessary items that you will require in April is a great way to put yourself at ease, and also be on time for filing taxes.

Update the Budget

Think about how the budget plan that you followed for the last year worked for you. This time around you need to update it; a lot can happen in a year. If you got promoted and got a raise, you need an entirely new plan on how to spend and save. If you took a new loan, you might have to use your savings, and stick to a new savings regimen too.

Check your Credit Score

Credit scores can scare anyone. It is important that you know where you stand. You might find that you are doing a great job and for that you might feel confident applying for the new loan. Or, you might find that you are going downhill with your credit score, and that should be a signal that you curb credit card spending pronto.

Round off Everything

When you review your finances, make sure that you make things easier for yourself by rounding off things and removing decimals that make you mad. If this is the time of the year that you have to transfer money to your savings account, make sure you do it in increments of $500. If your credit card bill ends in decimals, make sure that you reserve money for the next whole number. This way you won’t be confused of how much you should budget.

Shred Documents You Do Not Need

Having an uncluttered and clean workspace means that you organize every one of your financial documents, tax information, and receipts. This is the time that you make two piles, the documents that you need, and the outdated ones that are only taking space and should remind you that you need to update for new ones. Get rid of the ones you don’t need.

Clear Off That Big Debt

In case you have been caught up, and are only now reviewing your finances, see which outstanding debts you can pay and have not already and make the payments. It is possible that you forgot that credit shared to your card for a certain vacation expense. Leaving it be is only going to ruin your credit score.