How to Spring Clean Your Finances: 7 Tips to Get Your Finances Cleaned Up
- liveyourmoneystyle
- Mar 6
- 4 min read
Table of Contents:
Instead of Cleaning Out Another Closet, Spring Clean Your Finances!
Spring cleaning isn't just for your closets or drawers—it's a great time to tidy up your financial life as well. Take action on these 7 tips to jumpstart your financial progress this spring and set yourself up for financial success!
Do you know all of your recurring subscription payments?
Have you reviewed your credit card statements or bank account statements lately to see what charges are recurring? It can be easy to forget about the subscriptions that are automatically deducted from your account each month, quarter, or year. You might be surprised at how much you're spending on subscriptions you no longer use.
Take the time to review these charges. If you find services you no longer need, cancel the subscription! The money you save can be redirected to increase your emergency fund, investments, or even make an extra payment towards your debt.
Is Your Money Really Invested in Your Retirement Accounts?
It’s great that you have opened a 401(k) or an IRA and started contributing (kudos to you!). But have you made sure that your contributions are actually invested? If your retirement funds are just sitting in cash, you’re missing out on potential growth.
To maximize your retirement savings, make sure that the funds are allocated into investment options such as stocks, bonds, or mutual funds. This allows your money to grow over time, instead of sitting idle.
Have You Maximized Your Earnings Potential?
Spring is a great time to evaluate where you are in your career and assess how you can maximize your earnings potential. If you haven't already, consider taking on a side hustle or negotiating for a raise. Review your company's promotion timeline and ensure you're advocating for yourself when decision time comes around.
Never shy away from negotiating your salary—it's a key part of growing your wealth. Plan ahead to highlight your accomplishments and set yourself up for career success.
Increase Your Emergency Fund or Retirement Contributions
If you've been diligent about managing your expenses or recently earned more income, why not put that extra money to work? Consider increasing your emergency fund or boosting your retirement contributions. Even small increases, like $25 or $50 per month, can make a huge difference in the long run due to compounding interest.
Financial experts recommend having 3-6 months of expenses saved in your emergency fund. And don’t forget that contribution limits for 401(k)s and IRAs change annually. Be sure to check the latest 2024 contribution limits on the IRS website HERE.
Move Your Emergency Fund Into a High-Yield Savings Account
Is your emergency fund just sitting in a regular savings account earning next to no interest? Take action this spring and move your emergency fund into a high-yield savings account. These accounts typically offer much higher interest rates than traditional savings or checking accounts, allowing your money to grow while still remaining easily accessible in case of an emergency.
Make an Extra Payment Towards Your Debt
Got some extra cash this month? Consider making an extra payment towards your debt. Any extra amount you can put towards high-interest debt will help you pay it off faster and save money on interest in the long run. If you have multiple debts, focus on paying down the one with the highest interest rate first.
By making consistent extra payments, you can dramatically reduce your debt load and get closer to achieving financial freedom.
Check Your Credit Report
Have you checked your credit report recently? You are legally entitled to request a free credit report from each of the major credit bureaus once a year. Use this opportunity to make sure all the accounts listed are yours, and check for any fraudulent activity.
If you’re working on improving your credit score, review your current standing and take actionable steps towards boosting it. A higher credit score means better interest rates, and more lenders will be willing to work with you when you need a loan.
For more information on how to check your credit report for free, click HERE.
Final Thoughts: Spring Clean Your Finances for a Fresh Start
Spring cleaning isn’t just about decluttering your physical space—it’s also a perfect time to tidy up your finances! By following these 7 financial spring cleaning tips, you’ll be well on your way to improving your financial health and setting yourself up for success.
Start with one or two of these tips and gradually tackle them throughout the season. The key is to stay consistent and make incremental progress toward your financial goals.
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