Spring Clean Your Finances

After a long and cold Canadian winter, spring tends to bring signs of hope and renewal. As days grow longer and trees begin to bud, spring is the perfect time to clean up our finances, reduce debt and let our financial health bloom.

Here are a few tips to help you get started with your spring financial cleaning:

Clean out the clutterAddressing your financial health is always easier when records are organized and up-to-date.  Take the time to organize your bills, receipts and statements or establish a new filing system that will allow you to keep yourself organized and track spending.

Do a credit checkA clean and accurate credit report is essential to a healthy financial outlook.  When spring cleaning your finances, take the time to request free copies of your credit reports from TransUnion and Equifax.  Your credit report is a snapshot of your financial health, so it is important to review for accuracy and report any mistakes you may find.

Wipe out debtAs tax refunds start to make their way into mailboxes across the country, consider putting yours towards your credit card debt.  If the return is not big enough to completely eliminate credit card debt, design a savings plan to tackle debt throughout the year.

Balance your budgetWhile budgeting always seems overwhelming; it’s really just a list of money coming in and money going out.  Download a free app or web program that can easily help you manage your finances and reduce overspending.

63059_10151553210982491_911046792_nOnce you have cleaned out the clutter, created a debt repayment strategy and addressed your household budget, it’s time to start saving for the future.  Creating an emergency fund or saving for a raining day is a critical step towards financial freedom.