declutter your finances

It’s Time To Finally Declutter Your Finances

Share on facebook
Share on twitter
Share on linkedin

Every spring, you do a deep clean of your house. You get rid of all of the dust and dirt that your rooms have collected over the winter. You declutter piles of paper sitting on your tables, remove worn-out clothes from your closet and lug out the junk taking up space in your garage. After all of the hard work, your entire home feels neat and refreshed.

Once you’re done spring cleaning your house, you should direct your attention to another spring cleaning project: your finances.

Why Should You Declutter Your Finances?

The biggest reason to declutter your finances is that it will save you money. By cutting out unnecessary expenses from next month’s bank statements, you’ll be leaving more money sitting untouched in your checking account. You can put those savings towards better causes!

Like what? You could use those extra savings to start an emergency fund. An emergency fund will help you cover urgent, unexpected expenses right away.

Without an emergency fund, you might have to turn to an alternative solution for help, like applying for a personal line of credit. A personal line of credit allows you to access credit when you need it for emergency expenses. It might be your best option for handling this urgent problem when you don’t have savings.

How Can You Declutter Your Finances?

Cancel Unnecessary Subscriptions

Go through your credit card statements and make a note of every single subscription that you’re paying for. Then, cancel subscriptions you don’t want or need anymore. Get those payments off your credit card.

Avoid Unnecessary Bank Fees

Go through your bank statements to see whether they’re filled with additional charges from your bank. You might have accumulated a lot of fees. Don’t worry — you can change that.

These are some of the best ways to avoid fees:

• Paper statement fees: switch to digital banking statements to avoid paper statement fees.

• Overdraft fees: track your expenses so that you don’t make transactions that put your account into the red. You could also look into overdraft protection with your bank. They may provide this service for free.

• Minimum balance fees: many banks will waive monthly fees as long as you maintain a minimum balance in your account. Find out what that minimum balance is and try your best to stick to it to avoid charges.

• Out-of-network ATM fees: using an ATM that’s out of network can hit you with two fees — one from your bank and another by the ATM provider. Stick to in-network ATMs whenever you need to manage your money.

Avoid Late Fees

Wipe away those pesky late fees from your future bank statements. How? Automate your bill payments to creditors through your online banking. You’ll never have to worry about a deadline slipping your mind again.

You can also avoid credit card late fees by paying the minimum on your bill. The minimum is the smallest amount the credit card issuer will accept for that month of the billing cycle. So, automate your credit card payment to cover the minimum.

Get Organized with a Budget

If you’re not following a budget, download one of the top budgeting apps on your smartphone and use it to divvy up your income for the month. The simple financial tool will help you calculate, organize and prioritize your expenses.

When your personal finances are a mess, you need to do some spring cleaning. It will make your accounts neater and your savings a lot bigger.