Remember how good your house feels once you’ve done some spring cleaning and gotten everything in order? It works the same way with your finances. Consider these steps that can make a big difference in the overall scheme of things.
Dust off your budget. It’s easy to just stay busy and not really pay attention to where your money is going. Plan to spend just a couple hours one evening or on the weekend looking at your bank statement and credit card statement and make a list of your income and expenses for a particular month. You may be amazed how many dollars are going into one category of spending or another. Are you paying membership fees or subscription fees for services you’ve just never taken the time to cancel? If so, cut them out. You work hard, so it’s important to make every dollar count.
Toss out your debt. If you’re only making the minimum payment due each month on your credit cards or other bills, it could take years to pay it off. It’s a smart idea to consider a debt consolidation loan where you combine all of those bills into one monthly payment – usually at a much lower interest rate. You’ll eliminate the stress of having to pay so many bills every month and you’ll pay your way out of debt much faster.
Trim the amount of interest you’re paying on your home loan. Mortgage rates are still historically low. Taking time to refinance can help you pay off your mortgage sooner and save on the interest you pay over the life of your loan. Remember, you don’t have to know all the answers or know how to get this done all on your own. Local mortgage lenders will be glad to sit down with you and help you determine whether refinancing makes sense for you or not.
Make a fresh start towards saving money. The best way to save money is to simply take the first step. Consider opening a new savings account and transferring a set amount of money to that account each month. It doesn’t have to be a large amount. Every little bit helps, and before you know it, your savings will add up.
Take some time to review your investments. For many people, retirement planning is out of sight out of mind. If it’s been a while since a financial advisor has reviewed your current investments, it could make a huge difference for you to make sure you’re investing in the type of funds best suited for you. Then, don’t delay because time is money.
So take charge of your hard-earned dollars. Once you spend just a little time spring cleaning your finances, it’s sure to feel like a breath of fresh air.