6 Steps to clean and renovate your financial house this spring

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By: Good Nelly
on 22nd Mar,2011

Spring has finally arrived. It is the best time to discard the useless financial items and clean up your financial house.
6 Steps to clean and renovate your financial house this spring

Spring has finally arrived. It is the best time to discard the useless financial items and clean up your financial house. If you are really interested in improving your financial situation, then cleaning up your finances in this spring will definitely help you meet your goals without any trouble. Glance through the article to know about the steps to restore your financial house and get it back in order.  

Steps to repair your financial house this spring

Here are some of the most effective steps that can help you give a spring cleaning to your financial house and get it back in order:

1. Sort out your financial papers: Is your important financial documents scattered in the different parts of your house? If yes, collect all the financial papers and keep them on your desk. Once you have all the papers in front of you, divided them into different categories - utilities, credit cards and miscellaneous. Keep the relevant documents such as checks, payment receipts, bills, tax returns, etc. in a folder and discard the unnecessary papers. This will help you have few papers in your drawers.

2. Go through your credit report: You can get a free copy of your credit report from the 3 bureaus (TransUnion, Experian and Equifax) once in a year. Ensure that your credit report doesn't contain any mistake. If there are some errors, then you'll need to take the necessary steps to rectify them. You should try to resist the temptation of running to your nearest credit repairing agency after finding several negative items on your credit report. The reason is, a lot of scam companies exist in the market that guarantee you to repair your credit within a few days. You should never work with such companies as such promises can't be fulfilled in reality. This is only a clever ploy of the scammers to milk money from the customers.  

3. Reorganize your budget: Are you certain that your present budget is enough to help you meet your goals? Have you made alterations to your budget as per your income? Review your budget and check whether your existing budget needs any modification? Make changes to your budget if there has been a drop in your cash flow recently. Keep aside some money for contributing to your savings and retirement accounts.  

4. Go through your insurance coverage: Most of the people have to pay a substantial amount for their insurance premiums. Have you ever thought how life would be much easier if you can get the same coverage at minimum cost? Browse through the authentic insurance websites and make a comparative study of the insurance rates. Find out if you are paying more or on your premiums for the same coverage. If more, then change your insurer or demand for rate reduction. Alternatively, find out new ways to increase your insurance deductibles and save dollars.      

5. Fulfill your financial obligations: Have you spent a lot of money for your holiday expenses and incurred debt? If yes, then spring is the right time to evaluate your debts and decide which loans you can repay this year. You can enroll in a debt relief program and eliminate the debts incurred during the holiday season.   

6. Go for automatic bill payments: Spring cleaning also involves the process of making your finance management more efficient. For this, you need to establish automatic bill payment system in your bank account. This will prevent you from missing payments and paying late fees.  

Last but not the least, you can combine your multiple investment accounts into fewer ones. The fewer the accounts, the lesser fees you'll have to pay. Apart from that, as you deposit more and more money in fewer accounts, your money starts growing faster.

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