7 Steps to Clean Up Your Finances

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Let’s face it, we all get lazy from time to time and let things get out of control and we need to refocus and get things in order and our finances are no exception to this.

There is no time like the present to take a long hard look at your finances and look at ways to clean them up. By taking the steps to get your finances in order, you will be creating a stronger foundation for a more successful future.

These seven tips for re-evaluating your finances should get you on the right track:

1)Prioritize and pay down your debt.

Taking a look at your debt is the best place to start when it comes to cleaning up your finances. Look at how much you owe and the amount of interest you are paying. This includes everything from credit cards, medical bills, store loans and even your mortgage.

If you haven’t looked at refinancing your mortgage or getting a home equity line of credit to pay off some of your smaller debts at a lower interest rate, that may be something to consider. If your credit has improved, contact your card company and request a better interest rate.

Create a plan to tackle these debts and get them paid off as soon as possible. Start with the loans with the smaller balances first and then work your way up unless you have a smaller consumer debt with a very high interest rate, then that one may take priority.

2)Re-evaluate your budget and stick with it.

If you even have a budget, when was the last time you took a look at it? You should review your budget at least once a year and following any life event. If you’ve made any major purchases, paid off debt, changed jobs, had a kid, any major medical procedure are all catalysts to re-evaluate your spending.

Determine which expenses are priorities and identify areas where you can cut back. Taking these necessary steps will help ensure that you are still heading down the path to a strong economic future.

There are several tools available to you that you can take advantage of, such as Mint, that will help you track your expenses and stick to your budge. Create goals for yourself and have fun with it, this is your life and you are in control.

3)Review your credit report for errors.

You are allowed one free credit report every year from the three credit bureaus. Take advantage of this and be sure to review your credit report for potential errors that are costing you.

Any potential error could be costing you the ability to get a loan or causing you to get a higher interest rate that will cause you to pay much more over the life of your loan. It is important to know what is affecting your credit score and ensure that it is accurate.

4)Go Paperless.

Signing up for electronic statements can greatly reduce the amount of clutter in your home and ensure that your statements don’t get lost in the mail. This will also allow you to access your statements from any location and reduce the risk of your financial information ending up in the wrong hands.

5)Set Up Bills for Autopay.

Let’s face it, we all get busy from time to time and forget to make a payment or two. Setting you bill up on autopay will ensure that you never miss a payment again.

Doing this will ensure that you never miss a payment that may negatively affect your credit score. You can set up recurring payments and decide where to withdraw the funds, be it from a credit card or directly from your checking account.

6)Consolidate Accounts.

Trying to manage several accounts can be a daunting and tedious task. If you have accounts that you rarely use, it may be time to consider closing them. As a note, closing some accounts may incur a fee or negatively impact your credit score, so take this into consideration.

A few other options to look at are to streamline everything and bring all of your accounts under one bank or use a personal financial management service that allows you to see all of your accounts, bills, credit cards, and investment accounts in one location using one login.

7)Use Technology.

Most banks now offer a mobile banking app that allow you to see and manage your finances from anywhere as long as you have internet. You can check balances, make transfers and pay bills right from your cellphone, tablet or laptop.

Your bank may even allow you to deposit checks or accept payments depending on how sophisticated their app is. If your bank doesn’t have its own app there are several free apps out there that can help you track your finances and even create and stick to a budget.