Spring has sprung, and that means it’s time to review your finances. There really is no bad time to do a money check-up, but spring is as good as any — it’s tax season and right before any major summer travel. Here are some steps to take to make sure your finances are in order.
The first step to reviewing your money is to consider your current situation. What money is coming in and where is it going? How are your investments? What is the state of your debts? Don’t assume that your finances are just how you remember them from the last review. Comb through everything to get an overview of how things stand at the moment.
Revise Your Budget
Now that you’ve got a bird’s eye view of your finances, chances are your budget needs help. Cut unnecessary expenses to free up more cash. Make sure you’ve addressed any new debts that popped up. Go over the entire budget and tighten it up.
Stock Your Fund
Hopefully revising your budget left you with some cash. If your emergency fund is depleted, use that extra money to build it back up. Don’t stop padding the fund until you have three to six month’s worth of expenses covered.
Plan Out Debts
Make sure you have a plan to pay down debt. As US News suggests, if you have debt on a high-interest credit card, you could try a balance transfer card to pay the debt down more quickly. If you have student loan debt, look into your options so that your payments best suit your financial situation.
Make Savings a Priority
No matter how your spring finances review goes, make savings a priority. You always want to be saving something, even if it’s a small amount. Maintaining savings is key to every money review.