Fortunately, there are some simple ways you can add more money to your account each month. Just as you spring clean your home to give it a thorough scrubbing, you can spring clean your finances. And now is a great time to do this considering spring is here and tax day is just around the corner!
Below are six ways to spring clean your finances!
1. Clean Up Your Paperwork
The first thing to do is go through your paperwork - bills, statements, tax documents, etc. Many people keep their important files on a computer and then back them up on an external hard drive or the cloud. You may also want to keep some important documents in a file cabinet. The documents you no longer need can be shredded to avoid identity theft.
2. Review Your Monthly Budget
Once you go through your paperwork, you’ll have a better understanding of your finances. No one likes to budget, but it has to be done. Building wealth isn’t exactly convenient, after all.
Instead of looking at budgeting as a negative thing, reframe your thinking. You’re prioritizing where you want your money to go based on your idea of what a ‘perfect’ life looks like.
Some people want a big house to fill with expensive gadgets, while others prefer to travel and enjoy a passive income. As you review your budget, look at some of the ways you can cut your spending. Would you rather spend $100 on cable or put that toward a down payment for a house?
3. Cancel Unnecessary Subscriptions
As you look through your bills, watch for unnecessary subscriptions. Many people don’t realize how many subscriptions they’re paying for on a monthly basis - video and music streaming, gym memberships, box subscriptions, antivirus software, cloud services and more. List out your subscriptions manually or use an automated tool like Truebill. This way, you can tell what you’re paying for and what’s worth it.
4. Plan and Budget for Unexpected Expenses
It’s often the unexpected expenses - a broken water heater, multiple wedding gifts - that end up putting people over their budget. Rather than working backwards, plan ahead. Set aside some of your budget for irregular expenses, including travel.
5. Plan Your Retirement Contributions
Now is a good time to plan out your retirement savings for the year. Do you plan to max out your IRA or 401(k)? Take advantage of matching contributions? Schedule an appointment with your financial advisor in New Jersey so that you can make sure you’re on track with your savings goals.
6. Automate Your Savings
Many people find it beneficial to automate their savings. You can do this in a number of ways, such as by splitting your direct deposit to go into your savings account, setting up automated recurring transfers or using an automated savings app to save spare change. Automating your savings makes it easier to build wealth - and it takes the temptation out of spending!
These are just some of the ways you can spring clean your finances. To schedule a consultation with a financial advisor, contact Leonard Financial Solutions today. We’ll get you on track with your savings goals!