When it comes to spring cleaning your home, there are many things you can do. When was the last time you cleaned out your freezer? When was the last time you went through your closet? Is your basement in desperate need of a scrub down?
While spring is a great time to address all of these questions, leave time to focus on your finances as well.
Below are three tips to help spring clean your finances, ensuring that you are in position for success as fall rolls around.
1. Focus on Taxes
Did you owe taxes upon completing your final return for 2019? Did you receive a refund? If you weren’t 100 percent happy with the outcome last year, it’s time to adjust your approach.
By making some simple changes today, such as altering your withholding, you will find yourself in better position next April.
If you received a stimulus check, put it to good use. Pay off debt, put it towards a home improvement or other investments.
2. Expenses, Expenses, Expenses
You make money and you spend money. For some, a feeling of spending too much never goes away.
If you don’t have a solid grasp of your expenses, now is the time to create a sound budget that will allow you to better understand where your money is going.
You should be able to answer this question at the end of every month: what did I spend my money on? It’s okay to have expenses. It’s not okay to have no clue as to where your money is going.
3. Set Goals
What are your financial goals for the remainder of 2020? Are you hoping to save a particular amount of money? Are you interested in making some type of big purchase, such as a house or car?
When you set financial related goals you will feel better about the future, as you always have something to work towards.
As you spring clean your home, don’t overlook the importance of doing the same with your finances.