10 Smart Ways to Spring Clean Your Finances

Income and Investments Three rolls of US one hundred dollar bills

Spring is well underway and tax season will be coming to a close soon.  Whether you have completed your taxes or you are working on beating the tax deadline, it’s a great time to eliminate clutter from your finances this year.  You Spring clean your home so why not start with your finances?  With these 10 tips you can be on your way to putting more money in your pocket in no time.

  1. Reduce your bills.  Time to stop being complacent and reevaluate your bills like cable, cell phone service, and auto insurance. You may find that you have been paying for services that you don’t need or too much.
  2. Double check your bank statements.  Review your bank statements for any recurring charges for items you don’t use.  Why pay for something you don’t want?  You can call and cancel recurring charges, immediately increasing your cash flow.
  3. Use a Tracking System. Using software like Mint and Quicken, can help you monitor your spending and savings.  Another benefit of using financial software is it can help you retrieve valuable information when you file your taxes.
  4. Tackle your debt with a snowball strategy. This strategy really works.  First choose your smallest balance credit card and pay the most you can on it while paying the minimum on the rest. After you pay that card off, move that money into your next credit card and repeat the process. You will have your debt paid off in no time using this method.
  5. Make Weekly Deposits to a Savings Account. Most people have very little money set aside in savings. It is important for the finances that there are liquid assets in case of emergency or the loss of income. Every week, you can set up weekly withdrawals from your checking account and put them into a savings account. Making your savings contributions automatic allows you not even have to think about it and the money gets put away safely.
  6. Contribute to an IRA.  Did you receive a tax refund?  If you did you can build your retirement by contributing up to $5,500 ($6,500 for 50 and older) and reduce your taxable income when you file your taxes next year.
  7. Start tax planning now.  Don’t wait until December to start making smart tax moves to increase your tax refund for next year.  You can make smart tax moves throughout the year by making moves like cleaning out your closets and donating to charity.  Don’t forget to value and track your donations with TurboTax ItsDeductible.  You can also adjust your w-4 if you have experienced changes in your income or family size.
  8. Create a Current Year Tax File. Whenever you receive a document that you know you’ll need next year when you do your taxes, shove it in your brand new current year tax file.  Examples include charitable donation receipts, car registration bills, real estate tax invoices, and the like.
  9. Unknown Money May be Waiting.  You may have money that belongs to you that you didn’t know about.  These unknown funds may come in the form of unclaimed funds or money through government programs that you may be eligible for.  You can check out TurboTax Benefit Assist to find out more.
  10. Save on Tax Prep.  Whether you haven’t filed your taxes yet or you are thinking about tax prep savings for next year.  You can keep more money in your pocket by doing your taxes yourself.  TurboTax allows you to easily, accurately, and conveniently save money on your taxes all while saving money.

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