Spring Clean Your Finances
To start your “financial spring cleaning”, you will need to take stock of your current expenses. Get a jump on it by eliminating any of your unnecessary expenditures:
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Review Your Goals
If you’ve been following my FLM advice from me and my company 1st Capital Insurance Group the past year or so, hopefully you have already created some excellent financial resolutions you intend to keep. It's time to take a close look at those goals you’ve set and determine whether or not you're on the path to achieving them. They may need to be updated, but if you have veered off course, do everything you can this spring to get yourself back on track. It’s common sense, but you know the phrase
Take Stock of Your Budget
What does Richard Chew consistently say mostly every month? Every household and individual should have a monthly budget. It tells you how much you can spend and keeps you within your means. You should budget for everyday items, such as groceries and gas, as well utilities and rent. Your income should cover your monthly budget, but if it doesn't, you can adjust.
After you have taken the above steps to review and possibly reduce your monthly budget, go over how much you spend on necessities. Then grab your previous month's bank statements to find out how much you spent on dining out and entertainment. Such expenses will be the first to go if your income is not covering your monthly costs.
Get everyone in your family on board with the new budgeting system. Ensure they will pay attention to how much they spend and record it in a family spreadsheet. Then you can see with a glance who is sticking to the plan and who needs a reminder.
Start Shredding
Every year, Americans accumulate an incredible amount of paperwork or just paper. From W2s to credit card offers to fliers from the local grocery store, you probably have a stack of paperwork in a corner of your home that is teetering on the brink of collapse if the wind blows. Comb through these documents to see what you
should keep and invest in a paper shredder. Not only can a shredder be a load of satisfying fun to use but is also extremely helpful in keeping your information secure. You do not want someone picking through your trash to find sensitive information about your finances, so shredding unneeded documents is the best way to go.
Plan for Your Future
A big part of spring cleaning your finances is determining what you need for the future as well. If you haven't been saving money, now is the time to start. We recommend that all clients set up an emergency savings fund. The money can cover unexpected expenses, such as new tires for your car or an expensive medical procedure.
Even if you are living paycheck to paycheck, it is still possible to save. You don't have to put away a lot each month — just a few dollars. The money will grow fast as long as you consistently contribute to the account. And as I always say, the psychological advantages are huge!