Spring is the season for cleaning and that shouldn’t just end at home. Your finances should go through a little spring cleaning themselves. Having an organized financial life can help you better understand the flow of your money. Tracking your income, how you spend it, and how much of it you save can give you the information you need to set financial goals for yourself.
So, while you’re decluttering your closet, remodeling your back patio, consider some financial spring cleaning, as well.
Here are some ways to organize your finances this spring (or anytime, really):
Review and Establish a Budget
To ensure your finances are in order and that they remain that way, it’s best to set up a balanced and realistic budget, if you don’t have one already. Review your monthly income and expenses then establish what your financial goals are. You could be saving for a long-term investment like a down payment on a home or you could be saving for a new gaming system or a getaway.
Whether it’s a long-term or short-term goal, budgeting is essential to making sure those goals are achieved. Organize your budget on a simple spreadsheet and review it often to ensure you are on track.
Having a budget will make it easier for you to reach your savings goals because it’ll help you determine how much money you can spend and how much you need to put away. You don’t need to plan out the rest of the year perfectly but instead start by creating a monthly budget, then track your finances for that month. Once you get into the habit, you’ll find yourself becoming a budgeting expert.
Set up a Money Pool/Automated Savings
One way to keep yourself organized financially is to set up automated savings, or an interest-earning Money Pool, like the one we offer at Marygold & Co.
Having a Money Pool allows you to separate and categorize your finances all within one account, making it easy for customers to track multiple savings goals at once.
Each individual can customize their automated savings to best align with their goals and current financial standing.
You can choose to contribute to your savings goals on a bi-weekly or monthly basis, and the amount you deposit is up to your discretion as well.
Automating your savings will help prioritize your goals and will reduce the temptation to overspend. You don’t even have to worry about making those regular deposits, it’s all done for you!
Pay Off Outstanding Payments
Look over any outstanding payments, if you have the means to pay them off, then do so. If not, this is the time to work out a way to pay your debts off.
Is there anything laying around your house you could sell? Are there extra shifts you could pick up at work?
Find opportunities that’ll help you earn that extra income to help you pay off your debts.
If you are unable to pay everything off right away, setting up a debt repayment plan can help you stay on track. While you may not pay everything off in one go, at least you have taken steps to reduce that debt and eventually eliminate it.
Make sure you include your debt payment plan in your budget.
This will help you stay on top of your payments by ensuring there is money available in your checking account to contribute to this payment plan.
Automatic Billing and Investments
Having your bills automated can help you ensure that they are always paid on time and that you’re not rummaging around for extra cash to meet your phone bill payment at the end of the month.
The best part about automatic billing is you don’t even have to think about it, it is automatic after all.
Additionally, you can even set up automatic deposits to your IRA or 401k investments. Automating deposits into these accounts will ensure you’re continually investing your funds.
The advantages of investing your money include reducing your taxable income for the year.
Analyze Your Spending Habits
Analyzing your spending habits will help you point out your spending habits, bad and good. When looking over your spending habits, you might find some patterns that are preventing you from achieving your financial goals.
An important step while spring cleaning your finances is to look over your spending habits and find areas where you can save.
Are there any unnecessary monthly subscriptions billed to your credit card?
Are there unnecessary transactions you can eliminate?
These are important questions to ask yourself when analyzing your spending habits. Find areas in your daily life where you can save. Maybe pack a lunch instead of ordering out every day, you’ll definitely see big rewards from the small changes you make in your daily habits.
If you lack financial discipline, the Marygold & Co. app can help. The customizable security dashboard allows customers to limit where the card can be used.
Accounts can also be turned on or off – which can also remove the temptation to unnecessarily spend.
Clean Up and Shred Old Paperwork
It’s easy for those paper bills and bank statements to pile up on the corner of your table.
Marygold & Co. can help you keep your finances organized. The best part about the Marygold & Co. app is that you won’t have to worry about paper – checks, receipts, pay stubs, etc.
Take the time to shred and discard any old paperwork. Make sure you dispose of these documents properly as they contain very sensitive information including personal information and bank statements. We recommend using a shredder to ensure these documents are properly destroyed.
Marygold & Co. Makes It Easy
Marygold & Co. can help you sort your finances and keep them organized throughout the year through an innovative new app launching this spring.
The FDIC-insured fintech app offers customers interest-earning savings accounts and allows them to send, receive, spend and save securely through their mobile device.
Control and organize your finances easily with Marygold & Co.
Your finances will never have to go through a spring cleaning again – instead, you can keep them clean and organized.