I think it’s fortuitous that spring cleaning and National Financial Literacy Month (NFLM) seem to coincide. Decluttering your living space can be a freeing and uplifting experience. A clean, well-organized space is a pleasure to be in. Let me share my recent experience with you.
We recently decided to do some purging and spring cleaning around our house, and of our home office in particular. Given our home is a bungalow, space is a premium and many spaces need to be multifunctional. What started as a cluttered, crowded mess of a space ended up tidy, sparse and now usable as an office and a guest bedroom thanks to the addition of a new, queen sleeper sofa.
This spring cleaning led to a much better space. Along the way, I found 24 pounds of coins, an American Express gift card, a nice pair of reading glasses, and a much better, usable space. Spring cleaning and the purging and donating of old items was really good for the soul and led to a little financial windfall as well. By the way, in my case 24 pounds of coins was worth about $289.
National Financial Literacy Month is a good time to remind us all that you can spring clean your finances as well. Simplifying your financial life can make managing your money less stressful and actually enjoyable. Here are a few tips to help you spring clean your finances.
Survey your accounts. Check to see how many open checking, savings, or investment accounts you have that you are not using. If you are not using a particular account, or subaccount, consolidate or close it.
Too many credit cards? This takes a little more finessing when it comes to cleaning up the number you have. First, don’t rush to close any cards. This could do two things: shorten your credit history and lower your FICO. If you do have multiple cards, consider closing them strategically. Select the best cards with the best options available to you. And try to keep your oldest accounts open if possible. Prior to closing any account, consider requesting a credit line increase on your favorite card if needed.
If you have multiple rollover IRAs that are the same type (for example, all pre-tax or all Roth), it may be a good idea to consolidate these accounts as well. This can be trickier, so consult with your CFP® prior to moving retirement money. You need to know if there are any tax consequences to consider.
Do you have multiple 401(k) accounts hanging around from previous employers? If so, these accounts are good targets for consolidation (or a potential rollover) as well. Every person’s situation is different, but you shouldn’t let multiple old 401(k) accounts go unmanaged.
Finally, get organized! Whether you need to hire a CFP® to help you, or create a specific space in your home for keeping your important financial records, it’s good to be organized. Just knowing where items are and how to quickly access your important account documents can reduce stress around finances.
These are just a few tips to help you clean up and manage your financial life. Streamlining accounts and consolidating account types and organizing your space can help you better understand what you have and make it easier to manage. Less mess equals less stress.
Do you have questions? Don’t know who to ask? Feel free to ask me! If it’s a really difficult question, we can explore the answer together. Be sure to subscribe to this blog! Contact me and let’s get started. #talktometuesday #education #Hireaplanner #financial #financialliteracy #NationalFinancialLiteracyMonth #NFLM #stressfree #savings #moneyeducation #financialeducation #CFPPro #LessMessLessStress