Spring Cleaning Your Finances in 6 Steps

Spring cleaning your finances might be the last thing on your mind. After all it’s been a turbulent few years. A worldwide pandemic locked down businesses, forced remote workspaces, and spurred the great recession. Just as things seem to move toward the “new normal”, Russia invades Ukraine, and the world is once more on edge. Stocks are tumultuous, and climbing back from 2020 financial hits is looking like a steep climb. Yet, with so many changes, it’s a good time to add a financial check to your home spring cleaning list.

I’m not talking about deciding which stocks to dump as Wall Street takes us on its wild ride with all the dips and climbs. I’m referring to a deeper look at how you planned for your retirement, and what you can do to improve your position without a large investment. The answer lies in what blue apple means to your finances in any market conditions. Before you look at new programs, start with some basic steps in spring cleaning your finances. It will give you a fresh starting point.

Step 1: Evaluate Your Situation

Before you make any plans about which programs would be effective in freeing cash flow, it’s time to review and evaluate your finances. There are several apps for this or you can simply list your assets and your debt. Add each column. How do they compare? If the debt is close to or more than your assets, take the next step. Next to each account’s outstanding balance, enter its interest rate, including mortgages, consumer loans, and credit cards.

Step 2: Reduce Your Debt

If the interest rates are higher than current available rates, debt consolidation might be a good tool for debt reduction. Regardless of how you do it, paying down debt is well worth the struggle because it gives you incredible freedom. To do this, you’ll have to watch your spending habits. So keep the good and work on the bad ones. For instance, during the pandemic, many of us revised several expensive habits, like eating at home instead of going out. If you enjoy it, keep your home dinners and invite friends over, even as businesses open back up. The money you’ll save adds up quickly.

Step 3: Cut spending to Save More for Retirement

With oil prices skyrocketing, then dipping before rising even higher, now is a good time to curb your spending habits. Take a good look at your budget. Revise it, cutting where you can in spite of raising the fuel budget. It is tempting to go out again and spend, but focus on the long term. See if you can trim a little more off your expenses and add that first to your emergency savings and then to your retirement accounts. Americore blue apple meaning offers creative ways to help you free up money for earlier retirement. Contact Dennis Bays here to learn more.

Step 4: Check Your Coverage

In spite of devastating loss of life during the pandemic, just over half of Americans own life insurance according to LIMRA. Perhaps because people perceive life insurance as being expensive and unaffordable, they leave this to their employer. Since the employer isn’t the beneficiary, it’s a good idea to do your own research. With information so accessible today, make sure your insurance is enough to protect your family.

Step 5: Automate Your Bills

Until you can pay off your debt, you have a tool available to keep your bills current. Set up automatic bill pay. Most creditors will voluntarily set this up for you, but if not, your financial institution can set it up. Either way, the bills get paid, as long as you have the funds in your account.

Step 6: Enjoy Yourself – at Least a Little

You’ve been through a pandemic, lockdown, skyrocketing inflation, and now world unrest over Russia’s military action. Give yourself a little break now and then. Without going overboard on spending, go out once in a while and enjoy yourself. You need to stick with your budget, but you can still spend a little on things that make you happy.

The Value of Spring Cleaning Your Finances

The effort you put into spring cleaning your finances will improve your future for years to come. That alone is worth a little work, but you don’t have to go it alone. Let Americore share the blue apple meaning with you. We love revealing its unique programs that save money, improve cash flow and open financial opportunities for your vision.