There’s a lot of work involved with spring cleaning, but boy does it ever feel good when you finish it! All that de-cluttering, organizing and dusting makes a big difference, so imagine how you’d feel if you spent time spring cleaning your finances too?!
6 Tips for Spring Cleaning Your Finances
Create an emergency file: In case of emergency, it’s wise to set up either a paper or e-file with all the log-ins and passwords to your important accounts. For safety’s sake, you might not want to use an obvious label name, but let your spouse or family member know where to access this information should an emergency arise.
Make an insurance inventory: Make a room by room inventory of items you would want to file an insurance claim if needed. Take photos of each item and store with the receipt, or make a video pointing out items throughout the house along with their value. Once you get the initial inventory done, it’ll be easy to add newly purchased items one by one.
Monitor your credit: Keep tabs on your credit score to help monitor your debt repayment progress. A high debt ratio can negatively impact your credit score and result in higher interest rates and monthly fees. Discover provides cardmembers their FICO® Credit Score for free on monthly statements. They also offer key reasons on why it may have changed. Having the ability to monitor your credit on a monthly basis, will allow you to see over time how reducing your debt has an impact on your credit score.
Transfer your debt: As you work on debt repayment, look to see if consolidating your credit card debt with a balance transfer can help. Doing a balance transfer with Discover for example, allows you to repay your debt with one monthly payment instead of paying several balances. This will help you save on interest and reach your pay down goals.
Go paperless: Cut paper clutter by opting for the paperless versions of monthly account statements.
Shred it: Further cut your clutter by shredding old paperwork you don’t need. Anything with sensitive account information on it should always be shredded. Old paper receipts which have been reconciled with statements or reimbursed as expenses can be shredded. The exception is for tax-based receipts. You’ll want to keep those in case of an audit.
This post was sponsored by Discover. All opinions are my own.