5 Tips to spring clean your finances
The onset of spring not only means spring cleaning for your home but also for your financials. Lynette Khalfani Cox, finance expert and founder of financial blog, Ask The Money Coach, shares her top five tips for doing a good financial spring cleaning!
Tip #1: Review your credit reports and credit scores
There are lots of ways to boost your credit score: pay all your bills on time, avoid inquiries, and dispute erroneous information in your credit files with TransUnion, Experian and Equifax.
Tip #2: Shred old financial documents
You only need to keep tax-related records for three years because the IRS can only audit you going back three years. (For those who intentionally commit tax fraud, though, there’s no limit on when the IRS can audit you)!
Tip #3: Record your financial passwords and store them in a safe place
Make sure you’re not using the same password and login information for all of your online bank accounts and other financial accounts. Protect yourself against identity theft by logging your financial passwords in a document and storing it in a safe place.
Tip #4: Review all your outgoing expenses and compare those bills to your net income, or your take-home pay. The key here is to make sure you are not deficit spending – or spending more money than you’re earning.
Also, change your mindset about budgeting.
Tip #5: Pay off debt and boost your savings
Make a plan to aggressively pay down debt so you can boost your savings and net worth. It’s not always easy, but you can reduce debt by using cash more often than plastic; negotiating to get lower interest rates on your cards; and also doubling your minimum payments — instead of making minimum payments. If you can’t pay double, just pay whatever you can afford above the minimum payment.
By tackling these five items, you’ll get your financial house in order this spring — and for the rest of 2018 too! wusa9.com | 5 Tips to spring clean your finances