For Successful Financial Cleaning

There’s a good chance that momentum has dissipated for you. You’re not alone. According to a study done last year by the University of Scranton, only eight percent of people successfully complete their resolutions. With your finances though, it’s not too late to make positive changes and see the benefits quickly. As we move into spring and the days get longer and warmer, here are five tips to help inspire some financial spring-cleaning to get your finances in order.

Understand your situation

It may feel like having to face up to harsh reality, but any financial improvements you make are guesswork if you’re not working from a real picture. Checking your credit score and reports first is important, as it can direct you to the parts of your financial profile urgently in need of attention. A personal financial management tool that aggregates your spending can give you an itemized picture of just where your money is going. You’d be surprised at how much money you’re wasting in areas of your life you’re not paying attention to.
                             

Set a specific goal

It’s not enough to just want to “spend less” or “be better.” As well-intentioned as these sentiments are – and as strong as they may feel to you – they aren’t going to help. Set a specific goal to achieve within a defined timeframe. When you think about spending less, what comes to mind? Looking at your credit report, or a breakdown of your spending, where does it appear that you’re going wrong? Flesh out that desire for improvement, and turn it into a real task. Give yourself a deadline that you can look forward to.

Look for small changes with a big impact

Closely peruse your credit card bill. Think critically about what you pay for and what you actually use or need. Is that Time Magazine subscription leaving you with a pile of old magazines in the corner?  If you’re not using your gym membership, even the cheapest monthly commitment can represent hundreds of wasted bucks. Swap a deluxe cable package for a few well-placed streaming services, or cut streaming out altogether. Take a good look at your mobile bill. You might be paying for a big data plan alongside unlimited calls and texts just out of convenience, but not actually need it. Take a second look at the market to make sure you’re getting the best deal for insurance. 

Beyond this, simple lifestyle tweaks can have massive financial impact. If you buy lunch or eat dinner out most days, packing a lunch one extra day a week and making an effort to cook at home more often can save you hundreds of bucks. Rather than heading out to the movie theater, watch a movie at home. The sacrifices don’t have to be big, but the savings will be.

You can make it fun

Financial prudence doesn’t have to be a drag. Treat yourself when you achieve your goals. Give yourself something to look forward to. Celebrate, responsibly, when you get there. If you have a partner, share the success with them. More than anything, it’s something to feel good about.

Source: Secondary