Spring is the perfect time to clean and tidy up your finances

April 1, 2019

When you think about spring cleaning, images of vacuums, mops and dusters likely come to mind. While you’ll probably undertake some of these chores when the warm weather arrives, late winter is the perfect time to tidy up another part of your life: your finances. Use the last few cold weather weekends to clean up your monetary problems with these three easy steps.

1. Switch to paperless
Chances are that your home office collects piles and piles of financial papers over the course of the year. Between bank account statements, utility bills and loan reminders, you may have trouble sorting all the sheets you end up with. U.S. News & World Report recommended taking the time to switch a few of your accounts to paperless delivery in the first months of the year. This will help to reduce your clutter piles and give you fewer papers to sort through at the end of each month.

2. Evaluate your debt
If you haven’t taken the necessary time to evaluate your debt load lately, the beginning of the year is a good time to do so. While it’s not the most enjoyable task in the world, Time magazine explained that staying aware of your debt can help you to slowly chip away at it. Consider whether refinancing your home or adjusting your interest rates could help to reduce the financial burden on your family. You should also decide whether you want to tackle small debts first or take a big chunk out of a major balance. Set goals to reduce your debt and stick to them throughout the year.

3. Rethink your budget
Finally, you should set aside a weekend during the spring to update your budget. Take any income changes into account and evaluate any problems you may have had last year. Did you end up spending too much on vacations? Is your emergency fund looking a little dry? Consider the ways you can optimize your savings and make the most of your family’s funds.

One great way to make your budget more efficient is to invest in an HMS Home Warranty. With this service on your side, you won’t have to worry about unexpected repairs on your home’s systems and appliances. It can go a long way toward keeping your house in top shape and minimizing unforeseen bills.