Doing a clean up of your finances is probably not the first thing you think of when it comes to spring cleaning. Like most people you probably think of cleaning up your wardrobe or your home. Sometimes the most important spring clean up you can do is with your finances and your credit situation. A few months ago I told you how to keep your credit in check during the holidays but I know it can be really difficult to stick to a budget during the holiday season. If you overspent during the holidays and now you are having some trouble getting back on track, use the beginning months of the year to set the tone for your finances for the rest of the year.
Right now is a great time to fix any mistakes you may have made especially because you may be expecting a tax return check soon. You will inevitably see tons of people going on shopping sprees and planning vacations but think twice before you make spur of the moment purchases. In the past I couldn’t wait until tax return season. I went all out with spending and before I knew it I had no money left and I still had piles and piles of bills. Being careless with my finances always left me feeling frustrated and I could never get ahead. I never qualified for big purchases like cars or buying a house until one day I realized it was my own fault. I also knew that I had the power within myself to fix the mess I made. In fact we all have the power to build the life we want by changing whatever it is that is holding us back…usually our financial situation.
“Every time you borrow money, you’re robbing your future self.”
-Nathan W. Morris
Clean up your finances with these simple tips
Pay off Smallest Balances & High Interest Cards
High interest cards can be a nightmare for your finances. If your payment is $50 but $30 of that is interest then you only paid $20 towards your balance. High interest cards like this can take years to pay off especially when you are only making the minimum monthly payment so try knocking down those balances as much as you can especially if you get a tax return back. Another top that has helped me is to pay off your smallest balances first. I say this because if you have 20 – $30/month payments you can easily forget to pay one. Knowing I have a ton of small payments really makes me feel overwhelmed and I would rather have 2 or 3 main bills than tons of small ones.
Think twice before you buy
I know that when I see that tax return hit the bank my first thoughts go to spending. But why leave my finances in chaos when I clean up any outstanding balances I may have right now. Sometimes when I get a chunk of money and I really want to make an impulse purchase I step back for a day or two. I will ask myself is this something I will use two months or a year from now? Most of the time the answer is no so by waiting a day or two I give myself time to rethink the purchase. Then I will also ask myself how I can allocate that money somewhere else.
Stop comparing yourself
In the blogging and social media world it’s very easy to get caught up in the comparison game. Personally I consider myself a “content creator” rather than an “influencer” however “influencers” do just that….they INFLUENCE. They may influence you to buy the latest fashions and designer digs but everyone has a different financial situation. Your favorite blogger could be digging themselves into a pile of debt to afford those designer bags. I know because I myself have made poor financial choices in an effort to try keeping up with them too. On the other hand they may have built up a a nice savings account for those occasional splurges. The point is that you can easily go broke trying to keep up with someone elses outward appearances. You may be at completely different stages in your life and that’s totally OK! Don’t ever feel the need to buy the latest designer bag because your favorite influencer has it.
Make Small Changes
I know you have probably heard this time and time again but small changes make a big difference. Try reducing the amount of times you go out to eat. We rarely eat out anymore unless we are having a date night or it’s a special occasion. If you are a coffee fanatic like me try making your coffee at home. I recently got an espresso machine and it was a couple hundred dollars but I save so much money in coffee now. I still enjoy an occasional coffee when I am out and about but usually I make it at home. Those little changes add up over a few months and can really help to keep your finances under control.
“Don’t compare your Chapter 1 to someone else’s Chapter 20.”
Let Lexington Law Help
If you are still feeling overwhelmed when it comes to your finances and your credit situation I completely understand. It can be a lot to think about and trying to tackle it yourself may be stressful at first. The representatives at Lexington Law are just a phone call away. They can help guide you to achieve your financial goals quickly and within your means. Even though I have quite a bit of experience when it comes to credit and finances I am always open to some additional help. Recently I joined their program and I was amazed at how helpful and easy everything was!
Sign up to stay on top of your credit with help from the professionals at Lexington Law!