SpringFinancesAlong with giving your home a good spring cleaning, it’s important to do the same to your personal financial situation. It’s a time to air out any financial difficulties you bear and deal with them head on.
Here are 5 ways you can do this now.

1. Obtain a recent copy of your credit report. Before you take on the task of cleaning up your financial situation, you need to know the details. If you have never looked at your credit report, it’s a perfect time to do now. In your credit report you will see your credit rating and your credit score.

Understanding your Credit Score
Your credit score is a judgment about your financial health, at a specific point in time. It indicates the risk you represent for lenders, compared with other consumers.

There are many different ways to work out credit scores. The credit-reporting agencies Equifax and TransUnion use a scale from 300 to 900. High scores on this scale are good. The higher your score, the lower the risk is for the lender. Lenders may also have their own ways of arriving at credit scores. In addition, lenders must decide on the lowest score you can have and still borrow money from them. They can also use your score to set the interest rate you will pay.

To sum up, you can improve credit by paying all of your bills in full and as quickly as possible.

Good Credit Rating = Good Credit Score

If you cannot pay your bills on time or in full (that is, not just the minimum payment, but the full amount), then you will need some help in paying off your debt, including interest. A professional debt relief firm can help you with this.

2. Take a fresh look at your budget. Does it still work for you? Has your financial situation changed with a new job, more debts or unexpected financial surprises? Are you planning on making a big purchase within the near future? Consider your expenses and income over the next 6 months and set yourself a new budget that keeps you on target. If you need a budget planner to help you, you can use this user friendly planner at https://www.occa.ca/budgeting/how-to-build-a-budget.

3. Trim the fat from your wallet. After you have adjusted your budget, use the same tenacity you’d use when cleaning out your closet to clean out your wallet. Do you have 10 credit cards or retail cards lurking in your wallet or purse that you rarely use? Cancel them and cut the cards. Free up your wallet space and remove the temptation of using the cards. Remember cash or debit is king! Make sure loose bills are accounted for so your expenses are recorded. You’d be surprised how good you feel after your wallet has been cleaned up.

4. Take stock of your investment and retirement accounts. Do your investments reflect your lifestyle and project the outcome you need still? Do they need to be rebalanced? If you continue on the same path in savings, will you have enough for a good retirement? Make sure your investments align with your goals so when you retire you will be well prepared.

5. Reinforce your security blanket. As you know every year presents new challenges and surprises that can put a damper on your financial situation and goals. Take the time to re-evaluate your needs (you can do this when resetting your budget) to ensure you can continue to invest in a safety fund – or emergency fund as many of us call it.

You will feel like a brand new person looking upon your financial future with an invigorated outlook after taking these steps. Good luck and happy spring cleaning!.

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