Financial spring cleaning8/31/2023 ![]() Try free budgeting and money tracking apps that simplify this process. Start tracking your money to identify where it is coming from (income) and where it is going (expenses). It gives you the freedom to do more of what you want to do." "I know a lot of people think of the word 'budget' as a negative thing, but it's not. "Think of a budget like spring cleaning: It's a great way to get things organized around the house, and you will feel a huge sense of relief once you do," she explains. Cruze says making a budget (if you don't already have one) is the best place to start. ![]() Knowing your current financial position is the first step to organizing your finances. Follow the steps below to tidy up your finances and create an approachable plan that works for you. share simple ways to clean up three significant aspects of your financial life: budgets, savings goals, and insurance coverage. But experts Rachel Cruze, bestselling author and personal finance expert, and Laurie Adams, certified financial planner. Just like cleaning out a crowded storage closet, confronting your personal finances can be intimidating-especially if you've been avoiding doing so for a while. Whether you're preparing for added expenses, like summer travel, or just want to feel more confident with your money in general, now is a perfect time to assess your financial life and ensure that your efforts are working to your benefit. After a bit of financial spring cleaning, you should have a clear idea of your goals and budget.Every year, spring cleaning offers the opportunity to tackle big projects you've been putting off-and that can include decluttering your finances. More than that, you want to make sure it is functional. You want to make sure the things you use the most are accessible. The same way you organize the pantry after cleaning it out applies to your finances. This is because it is designed to work for you. Organize in a Way That Works for YouĪt the end of the day, your budget will look different than someone else’s. Oftentimes, I’ll wind up tossing things I could have used or things I shouldn’t have thrown away at all. I’m addicted to throwing things out (seriously). If you’re like me, you get a little too excited about that last step (getting rid of things). Look for areas where you might be able to cut/trim costs and make those changes. You probably also don’t need a $6 coffee every single day. Chances are, you probably don’t need all of those streaming services. Just like cleaning out your closet, you need to get rid of things you don’t need too. You shouldn’t only be adding things to your budget though. Similarly, with your budget, if you plan for things like vacation or allocate money to areas that make your life easier, it will work in your favor. ![]() However, you should also consider what might make it easier to keep clean and organized throughout the rest of the year.įor instance, we added some organization products to our closet and it stays more tidy throughout the year. I know this isn’t necessarily what people think of when they think “spring cleaning.” Normally, you think about purging items from your home and decluttering. Consider Additional Budget ItemsĪfter you’ve considered whether or not your current budget is working for you, start thinking about things that you’d add to make your life easier. If your budget isn’t working for you anymore, don’t be afraid to scrap it and start from scratch! There is nothing better than a clean, blank slate to help you get back on track. It also needs to help contribute to your larger financial goals – whatever they may be. You want to make sure it works for your current lifestyle. If it has been a while since you’ve done any financial spring cleaning, then it is likely you need to make some significant changes to your budget. Make Sure It’s Workingįirst and foremost, you need to make sure that your current budget is working for you. Here are some ways that you can spruce up your budget this season. While I suggest everybody do that a couple of times a year, your spring cleaning routine should also apply to your finances. Most people think about clearing out their closets when “spring cleaning” comes to mind.
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