5 Easy Tips for Financial Spring Cleaning

5 Easy Tips for Financial Spring Cleaning

Spring has finally sprung, and many of us take time during the warmer weather to dust off the cobwebs and clean up our homes and clutter. While making your house tidy is great, what about your finances? Way more exciting than cleaning the house, this is a way to get empowered financially and achieve your life goals and dreams. You’re already in the mindset of making positive changes, so it’s an excellent time to get your finances in tip-top shape. Take these steps to get started with your financial spring cleaning: Automation time Automating your investment contributions and savings is a great way to clean up your monthly to-do list. By setting up an auto transfer, money can go directly from your paycheck to your savings account or investment account.  That way you don’t have to figure out how much to contribute every month, and you won’t have the temptation to spend that money elsewhere. If you haven’t started setting money aside yet, you should ideally aim to have about 20% of your income allocated towards paying your future self. Zap away debt While you’re spring cleaning, you should also be cleaning up any “dirty debt”.  Any debt with high interest rates (like credit card debt) can have a major impact on your financial future, and will only become a bigger mess if you ignore it. First, you should check through all your accounts, and figure out what you owe and what the interest rates are for them. Then, you should come up with a long-term game plan to wipe out this debt, by tackling the “dirtiest” (highest interest...