Clean your finances this spring
When your finances are in check, it shows!

Spring is in the air, but your finances don’t have to be. With spring cleaning on the brain, now is the time to tidy up that closet and more importantly, your wallet.

Fortunately, recent pop culture has heightened the cleaning fix in all our minds. Recently, methods of cleaning up by category and keeping only those belongings that bring you happiness have become increasingly popular. While this method is great for optimizing your physical space, it can also be used with your finances as well.

Here are 5 ways to clean up your finances just in time for spring.

  1. Clean Out Expenses

Give your bank account a clean-out by evaluating any recurring subscriptions that are on auto-pay every month and you can probably do without. For instance, you may realize that you don’t need that 500-channel cable package or magazine subscription. Don’t worry, you can still keep your Netflix subscription, but look into a family account to split the costs. You may want to consider saving money with your Amazon Prime membership by waiting a few extra days for your packages. Not to mention, this can discourage you from buying things you don’t need.

  1. Create Financial Categories

Using this categorizing technique, organize your bank statements from the past few months by creating a category for each transaction. Some categories might include living expenses—such as your rent, car payment, and utilities—savings, and entertainment. Once you’ve created your categories, develop a filing system that works for you, whether it’s folders, an app or online. This will help you see where your money has been going and monitor your spending for the future.

  1. Sort Out Your Credit Score

Improving your credit score is an important step in cleaning up your finances if you want to borrow or make a big purchase in the future. Start by combing through your report to check for any inaccuracies that can be lowering your score. After you’ve created your financial categories from the previous step, keep track of your bill’s payment dates to avoid missing payments. One way you can do this is by setting up automatic payments or calendar reminders.

  1. Pay Off Your Debt

Your first instinct to dealing with debt may be to ignore it hoping it will disappear, but this will only worsen the situation. While you’re partaking in spring cleaning at your home and only keeping items that bring you happiness, set aside the pieces you no longer want and sell them in a garage sale. You can use the money you make to pay off some of your debt. Another way you can accumulate some extra cash is by turning a hobby into a side hustle. For example, if you like crafts, monetize your hobby by selling your works of art online or to family and friends.

  1. Set and Commit to Financial Goals

Outline your short-term and long-term financial goals and plan how much money you need to set aside each month to achieve them. For many people, their primary goal is to increase their savings. While there are many ways to do this, one of the most effective is budgeting. Set a spending limit and commit to saying “no” when you reach your limit. Most importantly, track and be proud of the progress you’ve made to boost your financial confidence and inspire you to keep going.

Regardless of your financial situation, using spring cleaning and organizational techniques in your finances can help you reach your goals and tidy up your finances.