Most of the cleaning is done during springtime, but you shouldn’t be limited to clearing things up. You should do so whatever the time of the year maybe.
For most of us, summer is spent going on vacations like the beach or a camp trip or something. Although that is highly encouraged, you have to make sure to do some cleaning up before you head out.
In this article, I will lay out your step-by-step financial summer cleaning checklist so that you won’t have any problems with money.
- Organize Your Budget
Whether you’re planning to go on a vacation in the summer days or you just want to stay at home and binge-watch your favorite shows, you have to organize your budget.
Establishing and organizing your budget are two things that you must be familiar with if you want to maximize your money-spending and saving potential.
The first thing that you need to do is look at your monthly income. How much money do you have to spend? From there, you make a checklist of the things that you need to pay for like food, clothing, rent, mortgage, emergency fund, and so on.
After that is done, you can then optimize your budget by clearing out the unnecessary ones. But, if you have money to spare, you could either save it or you could spend some on entertainment.
My point is, you have to make sure to establish and then organize your budget accordingly to get the most out of your monthly income.
- Negotiate with Your Service Providers
Are you subscribed to a cable service? Is your internet speed the fastest at the price you’re paying it for?
Look at your current subscriptions and make it a point to negotiate with your service providers. The reason is that you could save a lot of cash whenever you negotiate some terms with your provider.
For example, if you’re still subscribed to a cable service, you can say that there are better channels and coverage on another service provider, so your current provider has no choice but to either upgrade your package for free or give you a discount.
I know this is an extra action on your part, but this can definitely be a great thing to do, especially if you want to improve your finances.
- Review Your Insurance Policies
The most logical thing that you can do when you start earning money is to get an insurance. Whether it is a health insurance or you want your most prized possessions insured, it is important that you get one.
When you’ve applied for an insurance and you’ve paid them handsomely for quite some time, you can ask them if you can reduce the payments whilst also maintaining the original terms of the insurance coverage.
Although not all insurance companies have this, it is still okay for you to do so. An extra portion of your money can be saved if you do and you can spend it on other things.
- Boost Your 401(k) Contributions
At some point, we all have to retire. That is just one fact of life that we cannot escape from. The good news is that you could definitely live even after working if you’ve saved a sizable portion in your retirement fund.
Be sure to start boosting your contributions as soon as possible. In the event that your retirement fund gets exhausted and you’re experiencing financial stress, you could potentially get some aid through a cash advance and other similar financial schemes.
- De-Clutter Financial Documents
You will be given financial documents by your bank and similar institutions if you availed some of their services like getting a credit card, perhaps getting a loan or something like that.
You might have been too busy that such documents have piled up. It is best that you de-clutter by arranging them and stashing them in a safe place. However, for really old documents, safely dispose of them by shredding it first (using a paper shredder or similar devices) and then throwing them in the appropriate bin.
- Factor in Possible Spending
There might be sales that you fancy like your favorite designer clothing having its price slashed by a considerable amount or there might be a trip for two to Paris that you can buy for cheap.
Whatever it is, make sure to factor in possible spending similar to the ones that I’ve highlighted above. In other words, create a financial cushion so that whenever something pops up that needs some money, you are able to dish it out.
- Never Forget Your Emergency Fund
Last but definitely not the least, never forget your emergency fund. Such a fund is a godsend, especially if you do not want to tap into your retirement fund just to pay for expenses.
There really is no limit to how much money you should save into your emergency fund, but a rule of thumb would be that the fund must at least have 3 months’ worth of living expenses.
Conclusion
Summer is not just for vacations, it is also a time for some financial sorting and cleaning as well. Make sure to look at your current subscriptions and negotiate accordingly, establish and organize a budget, contribute both to your retirement and emergency funds, and make sure to de-clutter and dispose of financial documents that are really old and expendable.
