How to Spring Clean Your Finances
Spring is finally here! The sun is shining, the air is warm…and your finances are a mess! Now is a great time to do a little spring cleaning on your finances to get everything in order and ensure that you are not spending a penny more than you need to on debt. Here are a few tips for cleaning up your finances and getting all those credit cards in order.
Professional life coaches and money managers know that the most important part of stable finances is having everything neat and organized. Set aside a secure and private physical space for all your receipts, invoices, bills and so on. Organize them in a way that is comfortable for you. It will make everything quick and easy to find when you need it. In the age of the Internet and online bill payments, this also means automating as much of your finances as possible. Make sure to keep them in a secure electronic folder for your finances on your computer as well.
Make a Budget and Stick to It
Having a strict budget does not mean that you cannot have any fun or make any impulsive purchases. All a budget means is that you have set aside the right amount of income for everything that you need, and your discretionary spending is limited to the amount that you set aside for each week or month. People fall behind on saving or debt payments because they lose track of how much they have spent. We all mean well, but sticking to a strict budget helps you to turn those good intentions into reality.
Make a Plan for Saving and Paying Down Debts
Debt is a simple reality of modern life, but you do not need to be a slave to your debts. Make a reasonable plan for getting those debts paid down as soon as possible, and you will be amazed at how much more free and happy you feel in your life. Do not forget that you can also be saving at the same time. Your savings will come in handy during financial emergencies and are a much cheaper option than taking on more debt at emergency rates.