Posted on Tuesday 15 February 2022
When you think about “spring cleaning,” you’re probably thinking about washing windows, dusting overhead fans, and (ugh) cleaning out every nook and cranny in your house. Spring cleaning isn’t always fun, but it’s a great feeling to know that you’re starting the season off fresh – especially after a long, chilly winter of being cooped up inside!
Although spring cleaning in the house is definitely the most well-known form of spring cleaning, you can take that to the next level by cleaning up your finances, too. But what does financial spring cleaning even mean? It’s a lot simpler than you might think: spring cleaning for your finances means taking a closer look at how your spending and saving habits contribute to your overall financial health. Plus you are not allowed to sweep any unwanted bills under the rug using fast payday loans just yet. You first have to do a thorough check on all your financials.
Not sure where to start?
We’ve got you covered. Put your mop and cleaning bucket to the side and take a look at our financial spring cleaning tips below. In just a few simple steps, we’ll show you how you can dust off the cobwebs in your personal finances and get a fresh start to the spring season!
Let’s face it: we’ve all got a ton of streaming services for anything and everything under the sun! Whether you’re watching and listening on your TV, your phone, or your laptop, there’s no shortage of television shows, movies, and podcasts looking for you to commit to a monthly charge.
Why not kick off your financial spring cleaning by re-evaluating your streaming subscriptions? Cutting back on a few subscriptions can not only give your budget a little bit of breathing room, but it can also be a great way to ensure that you’re only paying for the services that you actually use!
If you’re having trouble cutting the cord altogether, you can always cancel and sign back up with a new email address. With any luck, you’ll be able to get a promotional deal (or a free account)and cut back on spending for the spring!
There’s no denying that budgeting can be tough – but once your budget is set firmly in place, it can become a well-oiled machine for years to come. Of course, even the best budgets still need some TLC every once in a while, no matter how rock-solid they are! If your budget has been left to linger over the winter, it’s time for some spring cleaning.
Identifying holes in your budget is crucial to ensuring that your budget can carry you through the spring. Make sure that your budget is adjusted to account for inflation (spoiler alert: Canada’s inflation is at an 18-year high this year), so that you’ve set aside enough money each month for the essentials, like groceries, gas, and toiletries.
You should also use this as an opportunity to re-evaluate your financial goals to make sure your budget is setting you up for success. For example, maybe you’ve decided that you want to take a trip this summer, or you’re ready to start paying down credit cards. Or perhaps you want fix your car up using car repair loans. Budgets are flexible and can always be adjusted from one season to the next, so don’t be afraid to make changes to your budget to support those financial goals!
Bank statements, mortgage statements, 401k notices, utility bills, medical bills, and more can all pile up when you’re holding on to physical copies. Unless you’ve got a room filled with filing cabinets, those financial documents are probably taking up more space than you’d like! Not only do they take up valuable space, but these documents are also quick to create clutter – which means you’re more likely to feel disorganized and stressed as a result.
It might feel as though you need to hold onto these documents for the long-term, but the vast majority of financial documents can be discarded after three years. The only documents that you’ll want to hold onto longer are for loans that have been paid off (think mortgages, car loans, personal loans, or business loans).
Take an inventory of your financial documents and make sure you’re only holding onto what you actually need! And don’t forget that anything that can be discarded should be disposed of properly: invest in a paper shredder and make sure that your old financial information doesn’t get into the wrong hands.
There’s a ton of mental baggage that can come with your personal finances, which can come in the form of money-related traumas. The way that we think about money has a direct impact on how we approach spending, saving, paying bills, and any other money-related act.
For example, if you grew up in a home where your parents struggled to make ends meet, that has a direct effect on how you feel about your personal finances. Maybe they declared bankruptcy, argued about money, or were visibly stressed every month when it was time to pay the bills. As you grow into your own personal financial management, you might find yourself feeling similarly anxious or uncomfortable about money as a result – even if you have no reason to worry over whether bills will be paid on time.
It might sound silly, but clearing out any lingering mental clutter can have a huge impact on how you manage your finances! Use spring cleaning for your finances as an opportunity to face any money-related traumas head-on. Talk to your friends and trusted family members, and take small steps to overcome any potential triggers (like checking your bank account, opening bills, or looking through your credit card purchases).
Most importantly, don’t underestimate the power of confiding in a financial professional. Sitting down and talking with a credit counselor can make the overwhelming task of confronting money-related traumas into a simple, straightforward, and totally welcoming process. Trust us: that sense of freedom after breaking away from your money-related traumas is more than worth it!
Spring cleaning for your finances might feel tedious, but it’s one of the best things that you can do for your financial health. If tackling all of the steps on this list feels like too much, don’t be afraid to start with one and build from there. When it comes to boosting your financial health, no change is too small! Hope you find this informative. If you'd like to learn more, visit our articles section.