Are you ready to give your finances a good ol' spring cleaning? Let's get those money matters squeaky clean! Here are six ways to do just that.
Let's clean up that budget.
It's time to shake the dust off your budget! Pare down your spending until your budget looks neat and trim.
Freshen up your W-4.
You may want to adjust your withholding amount if you received a substantial refund this year. The IRS's tax withholding estimator can be a useful tool to help you determine the perfect number.
Deep clean your accounts.
Toss out those unused accounts like last season's fashion trend! Messy finances don't look good on anyone, so remove any accounts you no longer need. For instance, are there dormant accounts at a financial institution you no longer use or a 401(k) from your old job? Consolidate it. A minimalist approach to your finances will make it easier to manage your accounts, give your savings a greater chance at growth, and help you avoid fees for unused accounts.
Spring into freedom from debt.
Bye, debt! Make a clean break from debt and cut, cut, cut.
First, trim your budget, designating any extra funds for your debts. Next, choose a popular debt-busting approach, such as the avalanche method, in which you pay off debts in order from highest-interest to lowest, or the snowball method, where you start with the smallest debt and then move up your list. Going forward, maximize payments to the first debt on your list, making sure not to neglect minimum payments on the other debts. Before you know it, that debt will be gone! And you will have some new good habits!
Dust off your saving habits.
Get into the habit of maximizing your savings with a tangible financial goal. You can also make savings an itemized line in your budget, so you have funds set aside for this purpose. Finally, automate your savings by setting up a monthly transfer from your checking account to your savings account.
Make your investments sparkle.
It's time for a spring cleaning for your investments! Make your money shine by investigating whether your allocation strategy still serves you well, whether you need to adjust your diversification, and whether your retirement accounts are on track for your estimated retirement timeline.
Follow these tips and take your finances from dull to dazzling so they'll be in tip-top shape for summer!