By Charles Hall II, Midwest BankCentre
When we think about spring cleaning, most often we think about physically cleaning our living space, throwing away things we don’t need and organizing various areas of the home. Why not adapt that same tradition to our finances? The thought alone may be overwhelming for many but like any other task we take on, setting goals is always a good place to start. Don’t try to accomplish a financial overhaul all at once. Choose a manageable task and stick to that one job. You can always return to do more next week, next month or even next year. Below are a few of the many manageable financial spring cleaning tasks to get you started:
1. Scan, upload and backup – Pull out those boxes of important papers and first decide what goes and what stays. Before tossing documents, check with banks and financial services companies, including your 401(k) provider, to learn how long they retain electronic copies of your records. After scanning your documents, upload them to a separate hard drive and/or a reliable cloud storage service. If you want to avoid this becoming a yearly task, simply GO PAPERLESS and download your various statements on a monthly basis.
2. Assess your bank accounts – It’s important that your banking relationships are beneficial to you. If you have too many accounts, close the ones that you have not used within the past year and if needed, switch to an account that adds a little interest or offers some sort of cash back. Banking options continue to evolve with accounts now being offered online only (a great option for a savings account that isn’t easily accessible to you), bank debit cards that can be put “on hold” from the user’s mobile banking app to prevent fraudulent activity and even accounts designed to help repair your credit. While maintaining a healthy banking relationship is important, don’t be afraid to see what other banks are offering. This is also a great time to either update or add beneficiary designations to your accounts as well.
3. Negotiate with your service providers – Nothing excites me more than a deal and service providers are great at offering initial deals to get you on board but fail at offering deals on an ongoing basis. However, the last thing they want to do is lose a customer so why not ask how you can save money or if they can match the price of a competitor. The savings won’t always be substantial but every little bit of savings helps. When it comes to cable, an alternative option is to use free or less expensive services such as Hulu and Netflix.
Implementing financial spring cleaning tasks like these can help take the stress out of managing your finances and in some cases save you money or even make money for you. No matter what your current financial state is, consistent financial wellness is an attainable goal.