By Michael Colon, Community Relations Officer, San Diego County Credit Union

Spring is finally here! As you clean your home and prepare for summer, it’s a good time to also do a little spring cleaning of your finances. Tidying up loose ends now will set you on the path to a more successful financial future. 

#1. Update and Organize Financial Documents 

Organizing your financial documents should always be your first priority. Use digital documents for convenient organization and shred out-of-date documents to protect against identity theft. Titles for assets like vehicles, homes, and other property should be securely stored. Consider annually updating insurance plans, such as your home plan, to ensure it covers any improvements or additions you have made. 

#2. Dust Off Your Budget 

A budget starts with tracking expenses using a tool like an Excel sheet or journal. Identify your monthly income after taxes, then subtract fixed monthly expenses such as mortgage or rent, insurance, and average utility costs. Also include an accurate estimate of items that vary month to month, such as groceries, fuel and entertainment. A budget will provide an accurate picture of where to cut back your spending, allowing you to build toward your savings. 

#3. Clean Up Late Payments 

Fewer late payments on your credit report will generally improve your credit score and reduce your financial stress. Easy ways to eliminate the risk of late payments include setting up automatic withdrawals, using bill pay services, or adding calendar reminders for bills. You can review your payment history by requesting a free credit report annually at annualcreditreport.com. 

#4. Toss Out Debt 

There are some debts we can’t cancel, but making a plan to quickly pay them down will save you from the stress of interest rates. For more tips on reducing debt, read our Three Straightforward Strategies for Repaying Debt. 

#5. Sweep 

Managing unnecessary spending begins with identifying bad habits. Most of us enjoy going to the hottest new restaurant, but eating out frequently can really put a dent in your wallet. Opt for home-cooked meals to save money, and make a list before you head to the store so you can stay focused while shopping. 

#6. Start a Rainy Day Fund 

As the past couple of years have shown us, we need to be prepared for the expected and unexpected. Setting aside a small amount can accumulate over time and help you be prepared for the worst. If you need help with how to start a rainy day fund, read our blog about Five Ways to Grow Your Savings. A tidy home and tidy finances require work and time. Although different people will have different priorities, everybody can improve their finances by developing better habits and sticking to them. Spring into action today. Visit our Financial Knowledge Blog to learn more tips about setting up a solid financial future, or join us for Financial Wellness Wednesdays.