Its Spring! With the new season comes a new energy and attitude which we want to take full advantage of! Over the last year and this winter, it’s been easy to get into a financial rut or overspend on subscriptions which is why it's time to purge your finances. Keep reading to see our top tips to help you spring clean your finances!
Sweep Away Subscriptions
You’ve heard this before, but it becomes easy for subscriptions to build up over time. Maybe you’ve accumulated multiple streaming services but now things are picking up, so you don’t need them all. You could have been offered a free trial that has turned into an actual subscription. You may have signed up for a monthly plan that charges you for something you could buy cheaper at the store – all of these are great opportunities to lessen your monthly expenditures.
Buff Your Budget
After the holidays and last year, your budget may have taken a backseat. It’s time to dust off that budget and take a look at your expenses each month. See what it looks like after canceling a few subscriptions and get back into the routine of reducing expenses. There are apps that can help you track what you spend to allow you an easier way to stay on top of things.
Deep Clean Debt
Now is the time to look at your different debts such as credit cards, mortgage, or student loans. See what seems the most practical to work on paying off first. Your credit card may be the best place to start – while still making minimum payments on other debts, pay a little extra if you can afford it to your smallest debt. Once that’s paid off, continue doing the same for the next debt.
Declutter Old Accounts
You or a significant other may have an old 401k or HSA from a past job. Be proactive with that money and transfer everything into a new account. You may also have an old savings account from a different bank or credit union that you need to switch over. All of these items are important to keep track of and get moved and closed.
Restore Your Retirement
Even though retirement is far away, it’s important to save for that now. Open a retirement account such as a 401k with your company as well as a CD or IRA with us. Just think about not working once you're older and all the expenses you’ll still need to pay for – that money you start saving now will come in handy then.
Tidy Up the Emergency Fund
You may have dipped into your emergency fund over the past year, so be sure to work on building that back up. Open a savings account with us to store your money so it's ready when you need it most. When you are creating your budget, you’ll see how much money you can afford to put away in your emergency fund each month.
We hope these tips give you a few things to focus on this season, so you can get back on track with your finances. If you need a safe place to store your money, build retirement or take out a loan, American First Credit Union is here to help!
