
Spring is finally here and this season of renewal always puts people in the mood to clean and organize. While tidying up your living space and clearing out clutter are important steps to create a peaceful and calm home, don’t overlook the need to clean your financial house, too. Disorder can also build up in your budget, leading to excessive debt and anxiety, and keeping you from reaching various goals.
If you’re ready to spruce up your money habits and take control of your finances, follow this 7-step guide to get your finances in tip-top shape this spring:
Polish your budget and plug leaks.
Budgets must be adjusted each time you experience any big change or take on a new expense to ensure you’re meeting goals and staying out of debt. If you’re falling short on saving or barely making ends meet, it is time to refresh your spending plan and rebalance expenses. Take a deep dive into recurring bills and plug budget leaks which can arise in the form of unused subscriptions, premium movie channels no one watches or excessive mobile data. In fact, a new survey from Bread Financial found that 65% of respondents admitted they currently or in the past have started a free trial for a service that they forgot to cancel.
Luckily, there are apps like Trim that can help you find and cancel those unwanted subscriptions. They’ll even negotiate other bills on your behalf, helping to reduce your overall monthly spending so you can save without sacrificing.
Tidy up financial accounts.
If your bank charges fees for checking account maintenance, overdraft protection and out-of-network ATM use, it’s time to make a switch. There are plenty of no-fee checking account options available at other financial institutions.
For example, the Capital One 360 Checking promises no fees or minimums. You can also find a variety of no-fee debit cards at sites like CardRates.com. While you’re comparing accounts, consider moving your savings to a high-yield savings account to get a better rate as many offer over 5% annual percentage yield these days. Finally, review your insurance policy and look for savings by bundling services, increasing your deductible and removing unnecessary coverage.
Flush out credit card debt.
As credit card interest rates hover around 21%, paying down balances is harder than ever. Luckily, you can get some relief with a couple of tricks.
Begin by negotiating your interest rate—a recent study found that 76% of credit card holders were successful in scoring a lower interest rate by simply asking their card issuer. Debt consolidation loans can also help you manage multiple balances while saving on interest thanks to lower rates. Just make sure to compare options and scrutinize potential fees before applying.
Declutter your credit card collection.
Carrying a wallet full of credit cards often leads to overspending thanks to purchases spread across multiple accounts. So as you work on paying down debt, consider streamlining your payment methods to just a single card and opt for a flat-rate cash-back option to maximize rewards on all the things you buy.
Take for example the Bread Cashback American Express Card which offers an unlimited 2% back on every transaction regardless of what you’re buying or where you’re shopping. This eliminates the tedious task of tracking categories or trying to figure out which card to pay with in order to maximize rewards.
Scrub up spending habits.
Have you thought about how much you spend on impulse and how that impacts your budget and goals? According to a SlickDeals study, the average consumer spends over $150 a month on unplanned purchases. This is a good time to see just how much you’re dishing out without thought and think about how you can avoid those impulse buys.
When it comes to daily essentials you have to buy, shop savvier by comparing prices and looking for coupons and cash-back via deal aggregators like CouponCabin.com. Signing up for store loyalty programs is another way to stretch your dollars further. For instance, CVS Pharmacy’s ExtraCare program offers exclusive sales and coupons, personalized deals, 2% back in rewards and their paid ExtraCare Plus program can actually help you save more in the long run thanks to added perks such as prescription and healthcare benefits, and free same-day delivery.
Purge financial documents.
If you have stacks of bills, statements and other financial documents scattered around your home, it’s time to get organized by learning which papers to purge and which to keep.
Hold on to real estate records for as long as you own the property and keep any documents that support data in your individual tax return for up to 3 years from filing. However, purge bank and credit card statements as well as bills that you’ve paid and receipts for purchases you’ve decided to keep. However, turn those receipts into digital records while earning free rewards by snapping pictures of them using a free cash-back app like Fetch. The app will give you points towards free gift cards to a variety of stores like Target, Starbucks and Sephora that you can use for a little treat for yourself!
Cash in on clutter.
While clearing out excessive clothing, toys and unused electronics from around your home this spring, think about which items you can sell and where to post.
For instance, make money back on old clothing by requesting a “Clean Out” bag from Thredup which sells items for you; get an instant cash payment for your old smartphone through decluttr.com; sell unwanted gift cards for up to 92% of the value to sites like CardCash.com; and, post larger home goods on a local listing site like OfferUp.
You can even turn some unwanted goods into a cash-flowing asset by renting them such as unwanted baby gear via BabyQuip, and other goods like golf clubs or a bike through Yoodlize.
Andrea Woroch is a nationally-recognized consumer-savings expert, writer and frequent on-air contributor who is passionate about helping families find simple ways to spend less and save more. Andrea has appeared on popular shows like Today, Good Morning America and NBC Nightly News. Her advice and articles have been featured in the New York Times, Time, Money, Forbes and Real Simple.
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