Tips to Clean Up Your Finances

It’s a good thing that Spring Cleaning only happens once a year because I get nitpicky! You will easily see me spend half a day re-organizing and cleaning just the cupboards in the kitchen. I am a proponent of keeping things tidy, efficient, and organized. I love when I am done because I have improved my home and my space to serve me better, and gotten rid of the junk!

It’s important to do the same thing with your finances. They can acquire cobwebs and dust, once a year at least you should go through them. Oftentimes, it can even save you money. . .  Here are some places you can start:

• Clean up Paperwork: This is a great time of year to go through your files and any stacks of papers you may have, and shred what you no longer need. For example, if you have access to electronic records of your accounts, do you need to save the paper ones? If you find that you have a lot to dispose of, check locally: There are often free local shred days that you can utilize. *Remember* anything that want to dispose of with your personal information on it should be shredded!
• Go Paperless: Clean up clutter by enrolling in paperless billing and online banking. This saves the amount of paperwork accumulating on your desk, and many times you can set up with your bank account to automatically pay your bills. No more late fees! The environment will also thank you as well.
• Create a Budget: This is the most important part of your financial planning. Take some time to evaluate your spending over the past year, and identify any places where you could be saving money, or reevaluating your spending. You may find that investing in a coffee maker will save you money spent on Starbucks every month, or buying in bulk heavily used items in the household will save you money in the long run. Figuring out where your budget is inefficient  will allow the opportunity to find more money in your pocket.
• Clean up Accounting: Now that you have renovated your budget, go through and get rid of unused accounts, old checkbooks, consolidate accounts, etc. Many online banking accounts also allow you to track your spending, see when checks clear, and manage your money more efficiently.
• Check your insurance: Call your insurance Agent (that’s us!) and go over your policies. Be sure that you aren’t over covered, you have no gaps (which can equal a financial loss in the event of a claim), and you are not missing any discounts that you could apply to your policy. We offer occupational, group, multi-policy discounts, and many more! Read more on why you should check your policies annually. .   And 5 insurance “don’ts” that could cost you. . .
• Keep up on your Finances: Now that you have online banking, make it a daily habit to take 3 minutes and check that your receipts and account match up. You would be surprised how often a cashier may accidently punch in an incorrect amount or a random unauthorized charge can show up! You can also check your auto bill-pay and be sure you have adequate finances to cover all your expenses (and see how much extra you have due to your new budget!). Another option is to use an excel spreadsheet to keep track of your personal accounting, or get a software programs for personal accounting. Just be sure you back up your information to ensure your data is protected in case of a computer crash.

You would be surprised at how refreshing it feels to go through and clear up your finances, and it always feels good to save money! Invest some time on yourself this year, you will be glad you did 🙂