Spring clean your finances
Spring is a great time of year to clear your household of clutter. Why not do the same with your finances?
Here are some ways to spring clean your finances:
Tidy up your budget
It’s time to review your monthly spending and find ways to cut back. Have you been overdoing the takeout food this year? Buying more shoes than you can possibly wear? Pare down your budget until it’s neat and trim.
Freshen up your W-4
Tax season is the perfect time to revisit withholdings on your W-4. If you received an especially large refund this year, you may want to adjust the amount you withhold going forward. The IRS’s tax withholding estimator can help you determine the perfect number.
Deep clean your accounts
If you’ve switched from one bank or credit union to another, make sure you don’t have any dormant accounts still open. And if you’ve changed jobs recently, don’t forget to roll your old 401(k) into your current one. A minimalist approach to your finances will make it easier to manage your accounts and give your savings a greater chance at growth.
Toss out your debt
If you’ve been stuck in a debt cycle for too long, make plans to break free this spring.
First, consider a side hustle to earn some pocket money and designate the additional funds for your debt. Next, select a popular debt-busting approach, like the “avalanche” or “snowball” methods. The “avalanche” method encourages you to pay off debts in order from highest interest rate to lowest. With the “snowball” method, you’ll start on your smallest debt and work your way up to the largest.
Dust off your saving habits
Try to make savings a line item in your budget rather than waiting to see if there’s money left over at the end of the month. Or automate your savings by setting up a monthly transfer from your checking account to your savings account. See if Chief savings accounts help you get on the right track.