As birds chirp, windows are open, and people stroll in the park, it’s a perfect time to do some spring cleaning of your finances while enjoying the warm weather.
In today’s world, it’s common for people to have multiple accounts spread across different banks and financial institutions, making it hard to keep track of everything. You may have a checking account at one bank, a savings account at another, a brokerage account at another institution, not to mention your 401(k) plan and individual retirement account (IRA).
Consider consolidating these accounts into one financial institution, although it’s not always the best choice as different institutions may offer various benefits. Online tools can help you centralize all accounts in one place, providing you with an easy way to monitor your overall financial situation on one dashboard or platform.
Are you tired of accruing high annual fees on your credit cards or maintenance fees on your checking account? What about overdraft fees or foreign transaction fees? If so, it might be time to review your account terms to look for better options. Banks and fintech companies are competing for your funds, offering fee reductions, rewards-laden credit cards with no annual fee, and competitive savings and checking accounts with no maintenance fees or minimum balance requirements.
While reducing fees, you might find more room to save by reviewing your budget and identifying expenses to cut. Cancel subscriptions you don’t use or need to increase your savings.
Ensure your savings are in a growth-friendly place. Consider looking into high-yield savings accounts that offer competitive annual percentage yields (APY) up to around 4.86%. If your current account doesn’t offer sufficient incentives, consider switching.
While boosting savings, you might consider using that money to pay off high-interest debts. According to the Federal Reserve Bank of New York, total U.S. household debt amounts to $18.04 trillion. The average U.S. household carries credit card debt alone totaling $6,065, according to the Federal Reserve Bank of St. Louis.
Debt consolidation might be a solution if you have multiple loans and credit cards with different rates, minimum payment amounts, and due dates. Applying for a competitive personal loan to pay off all debts can streamline payments with a single minimum amount due each month and only one due date to remember. Many personal loans can be repaid within five years.
Spring is also a time for giving. Plan to donate a set amount of cash to charities supporting causes you’re passionate about. Keep receipts for tax purposes if you plan to itemize deductions.
Declutter your finance by switching to paperless billing through your financial institutions’ websites, enhancing security by receiving documents digitally rather than through physical mail.
You can access your credit reports for free annually from the three major credit reporting bureaus, TransUnion, Equifax, and Experian, to gain a comprehensive overview of your credit history and identify discrepancies to dispute.
As we transition from spring to summer, take advantage of longer days to assess your financial well-being. Consider actions such as reviewing accounts and credit reports, consolidating debts, and going paperless to streamline your financial management practices.