How to Spring Clean Your Finances (4 Video Links)
No one can escape the fact that the financial climate has been less than ideal lately. Rising inflation, increased utility costs, and high food prices are making everything very expensive right now. Rising costs are currently impacting people globally, so you are certainly not alone in feeling overwhelmed by sky-high living expenses. But while you may have little control over the factors that have driven up the prices of everyday living expenses, you can take steps to control how much they impact your financial situation.
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The new year is an ideal time to make changes and regain control over your finances. Carrying out a spring clean of your financial situation is a perfect way to make positive changes and a fresh start for the year ahead. Here are some of the ways that you can spring clean your finances:
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Assess Your Current Situation
While it may not sound appealing, sitting down and reviewing your current financial situation is an excellent way to regain control. Before spring cleaning your finances, you must thoroughly understand your current position. Assessing how much you have coming into your account each month and the total cost of your outgoings is an excellent place to start.
Declutter Your Outgoings
Once you have a clear idea of your outgoings versus income, you can dive a little deeper. Assessing your outgoings can throw up a few surprises, and you should find some ways to save pretty quickly. Look out for regular payments leaving your account and check that they are correct. If you have subscription payments coming out of your account, check that these are services that you still require. Spring cleaning your finances is the perfect time to cancel that gym membership you never use or stop the subscription to that magazine you no longer read.
Convert Unwanted Stuff into Cash
While you may be focused on spring cleaning your finances, now is an ideal time to spring clean your home too. Spring cleaning your home can reveal all kinds of items you don’t want or need, which is equivalent to cash lying around, ready to be claimed. From unwanted clothing to toys the kids do not play with, there is sure to be lots of stuff you can clear out. Selling these items can help you to give your finances a boost while also ensuring your home is clutter-free. Take a look at this ultimate garage sale guide for tips to make selling your stuff easier.
Start Saving
If you do not already save money each month, now is an ideal time to start. Building an emergency fund for yourself is an excellent way to reduce future financial stress. Having an emergency fund in place provides reassurance that if a large expense comes along or your financial situation changes, you will have the money to deal with it. Even starting with small savings is a big help. Setting aside the money you saved when assessing your outgoings is a great starting point for your emergency fund.
Consult with a financial advisor and a CPA regarding your personal finances
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
(amazon author page) amazon.com/author/kenboyd
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/