Now is the perfect time to tie up all the loose ends you’ve been meaning to get to, but never seem to find the time. And, since you’re already digging through your finances to get your taxes taken care of, why not take the chance to take a step back and evaluate whether you’re on track to meet all your financial goals by doing a financial spring cleaning.
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A financial spring cleaning can help you get organized, reduce stress, and set you up for financial success throughout the year. Here are some tips to get started:
In This Article
Revamp your budget
If you’re having trouble managing your finances or want to find ways to cut back on expenses, it might be time to refresh your budget.
Take a closer look at your spending habits and identify areas where you can make adjustments. Consider creating a detailed budget plan that includes all of your income and expenses, and be sure to set aside money for savings and unexpected expenses.
With a little effort and discipline, revamping your budget can help you achieve your financial goals and live a more comfortable life.
Manage debt wisely
Making on-time payments and paying more than the minimum on your credit cards is only the beginning of effectively managing your credit.
For example, if you have good credit but have a high balance on a high-interest credit card, you may benefit from debt consolidation. With a debt consolidation loan, borrowers often see lower interest rates compared to credit cards and a single monthly payment—which is usually easier to keep track of than multiple credit card payments.
People who can’t obtain a loan may benefit from transferring their balance to a card with a lower interest rate. However, promotional interest rates are frequently temporary, so it’s worthwhile to pay attention.
Another situation where you might benefit from re-evaluating is if you have a mortgage or other sizable loan, like a student loan. There are sometimes attractive refinancing offers available that could lower your interest rate. Just make sure that you read the fine print and understand all the fees and details of the new loan when you decide what’s right for you.
Make sure you’re on track for retirement
It’s a good idea to periodically check your retirement contributions to ensure you get the most out of it and meet your individual retirement goals. Another way to monitor this is to schedule a meeting with a financial advisor, who can help you determine where you stand (and whether you need to make any adjustments).
Either way, make sure you prioritize your retirement savings and don’t neglect your contributions.
Spring clean your finances
There you have it—while financial spring cleaning may sound a little daunting, it’s as important as getting the house and yard cleaned up for the summer.
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Once you have both done, you’ll have extra peace of mind as you enjoy the great outdoors or relax poolside and soak up some sun.
Written by Rose Wheeler
Rose Wheeler oversees the blog’s writing team and creates content strategy for Prosper. With 15+ years of journalism experience, she has covered business and finance-related topics such as consumer finance, financial products, banking, credit, and money management. Previously, Rose served as Editor-in-Chief for Wealth Hub at Future, Deputy Editor at Forbes Advisor, and Content Editor/Strategist at Millennial Money and The Motley Fool. In her free time, she enjoys exploring new places, reading, and playing video games.
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