BMI Federal Credit Union
Spring Cleaning Your Finances
Shaking the Cobwebs Out of Your Financial Life
Spring Cleaning: These seem to be two words that everyone associates with the first days of spring. It’s a time to clean out your closets, donate unused items and add a bit of simplicity to your life. But did you know that spring cleaning can also apply to your finances? Here are five great tips to help you “clean up” your finances this spring:
- Consolidate accounts. Are you guilty of having your money spread out among several different accounts? Not only does this make it hard to manage, it’s also difficult to keep track of how much you’re spending, which can lead to poor budgeting and debt. Try consolidating all your money into one or two accounts, that way you can better manage your money and know exactly where it’s going every month.
- Take advantage of online statements and bill pay. Most, if not all, financial institutions these days give you the option to receive statements and pay bills online. This is a great way to simplify your life and cut down on clutter. You won’t have piles of loose papers lying around and you’ll be able to manage all your finances from one easy place.
- Cancel unnecessary services. Take a look at your credit card statement for recurring payments for subscriptions or services you no longer use. Cancelling these unused services will not only make managing your finances easier, it’ll also give you extra money to put towards savings or paying off debt.
- Get rid of old financial documents. Many people tend to think that you need to keep every financial record, but this is not the case. The only financial documents you should keep permanently are tax returns or major financial records, everything else has a shelf life: credit card statements and pay stubs (one year), supporting tax documentation (three to seven years) and utility bills and deposit records (one month) can all be thrown away after a certain time. Don’t add more clutter to your life if you don’t need to!
- Evaluate your insurance. Insurance provides important coverage for you and your family in the event of a drastic event, such as a death or long-term disability. Take the time to make sure your coverage is adequate and up to-date and also consider whether you may need additional types of coverage.
Spring brings new beginnings, which means it’s the perfect time to de-clutter your finances and bring a fresh start to things. And now that your finances have been cleaned up, you can use a program such as My Finance Tool in Online Banking to keep track of your money and know where it’s going from start to finish. Start today, and your financial life will be in tip-top shape in no time!