Spring is a tax season and will be coming to a close soon. Whether you have completed your taxes or that you’re working on beating the tax deadline, it’s a great time for you to get rid of the mess from your finances this year. To help you out, here are the 8 smart ways on how to spring clean your finances:
1. Reduce your bills – it’s time to re-evaluate your bills such as your cell phone service, your cable and your auto insurance. You may simply find that you’re paying for services that you really don’t need that much.
2. Check your bank statements – you need to review your bank statements for any recurring charges for items you really don’t use. Why would you even pay for something you don’t like in the first place? You can call and cancel any recurring charges and immediately increase your cash flow.
3. Track your spendings – with this, you can use a software that can easily help you monitor your savings and spendings. Another benefit of using financial software is that, it could help you retrieve valuable information when you file your taxes.
4. Use the snowball strategy for your debt – this strategy really works. You only have to choose a credit card with the smallest balance and pay them, while paying the minimum on the rest. After paying the card off, you have to move the money into your next credit card and repeat the procedure. You’ll have your debt paid off in a very short span of time.
5. Plan your tax early – do not wait until December to start making smart moves for increasing your tax refund for the following year. You could surely make a smart tax move throughout the year by simply making moves like cleaning out your closet and donating to charity. You should not also forget to track and value your donations. You can surely adjust your W-4 if you have experienced the changes in your family size or income.
6. Create your tax file for the current year – once you have received a document that you know you will need next year once you do your taxes, you should shove it in your brand new current year tax file. For instance, you should include the benevolent donation receipts, car recording bills, invoices for the real estate tax and more.
7. Check for unknown funds – you may not be aware of it, but there can be money waiting for you. You need to check these unknown funds in the form of unclaimed funds or money through the government programs that you’re eligible for.
8. Tax Prep – in case you’re still thinking about the tax prep savings or haven’t filed your taxes yet for the following year, you can actually keep and save more money by simply prepping your taxes early.
If you would like to clean your finances in the easiest way possible, it would be best for you to take those tips mentioned above.