4 Ways to Clean Up Your Finances

Spring is here, and with it comes the idea of new beginnings. This is the time of year when temperatures warm up and we look forward to our summer vacations. It is also the time when we do our spring-cleaning; getting rid of some of the stuff we no longer want or need. This year take some small steps toward putting your finances in order as well. Business Paperwork

Toward that end, here are four ways to clean up your finances this spring, so you can head into summer truly ready to enjoy your upcoming vacation:

Monetize your “Junk”: When you go through your closets, drawers, desks, and other parts of your house, you will likely find a lot of stuff you no longer need. Instead of throwing it away or sending it out to the Goodwill, think about how you can cash in on some of the items you want to get rid of. For old clothes, they can be sold on second hand sites such as https://www.liketwice.com. You can probably find a market for your used electronics on eBay, and even old (seemingly useless) cell phones can fetch a few dollars on sites such as https://www.gazelle.com. Finally, if you do not have the time or inclination to sell your used merchandize, be sure to get a receipt if you give your stuff away to the Goodwill. At the very least, you can turn your unwanted items into a tax-deductible charitable donation.

Purchase “Out of Season” Items: Like every season, there are certain items that you can buy at a discount during spring. For example, now is a good time to find clearance deals on the fall and winter clothing you will need for next year. April and May are also good months to buy vacuum cleaners, refrigerators, and gym memberships, just to name a few. Consumer Reports has a more extensive listing of the best time to buy certain items throughout the year.

Examine your Needs and Wants: Spring is a good time to take a hard look at your bank and credit card statements from the first few months of the year and assess which purchases were necessities, which purchases were wants, and finally which purchases were downright frivolous. For example, groceries would (mostly) go into the “need” category, cable TV into the “want” category and a round of drinks for your co-workers into the “frivolous” category. For many, this exercise is eye opening, because many people throw away more money on frivolous activities than they care to admit.

Automate your Savings Plans: As the previous exercise demonstrates, many of us find it easy to spend money freely, and difficult to save money. If you have identified areas, where you spend too much that you want to clean up, one of the best ways to redirect your finances is to put that money into automated savings plans. Designate a certain amount monthly (10% to 15% of your income ideally) to be taken out and saved in an IRA and/or a savings account you cannot easily access.

These are a few suggestions but there are many ways to improve your financial health for yourself and your business. For more information on accounting strategies for your business, contact a small business accounting firm for assistance and to gain information that you may not know about improving your financial health.

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