Spring is known for being a season of reevaluation and new growth. However, this isn’t just a time to watch flowers bloom and new leaves unfurl. Many people choose to clean their homes and sort through their belongings. Why not “spring clean” your finances this year? After any spending during this Christmas season or during spring break trips, this next month is the perfect time to take a closer look at your financial situation.
Sort Through Your Paperwork
If you’re already spring cleaning the rest of your home, go one step further and organize any financial paperwork. According to the government, you should keep bank statements for one year and tax documents for seven years. If you have any that are older than this recommended time frame, dispose of them. If any documents contain your personal information, remember to use a shredder.
Reevaluate Your Spending Habits
Spring isn’t just a time to change your daily routine, but your routine spending habits. Routine spending is common. Take a few weeks to carefully record all of your expenses in your budget, and then look over what you’ve bought. Can you trace any patterns? If so, are there any habits you need to break? Now is a good time to think of new, healthy patterns to implement.
Adjust (or Create) Your Budget
If you haven’t been using a budget, start working on one. A budget is one of the best tools to help you manage your finances. A good budget will not only frame how you spend your money, but will help you track your financial habits. Get into the habit of writing a budget at the beginning of each month and looking over the previous month’s expenses.
Manage Any Debt
Although you may not be able to wipe out your entire debt during the spring season, start by taking healthy, concrete steps toward success. If you’re behind on any payments, prioritize catching up on them. If you have extra money, put it towards paying down your debt. Another good step is to set up a debt payment plan.
Spring is more than just a time to tidy your home. Instead, consider cleaning up your financial situation. There’s no better time to declutter your finances, perform a clean sweep of your financial habits, and toss out your debt.