Spring Clean Your Finances: Tips for a Brighter Financial Future
Spring Clean Your Finances: Tips for a Brighter Financial Future
We all hate it, but once it is done, “what a relief”, the house can breathe again! But what about your finances? Spring is also the perfect time to lean into and refresh those too. Here are some tips, and insights on how you can get your finances in order, and set them up for a brighter future.
To check your credit report, you can request a free copy from the 2 major credit bureaus: Equifax and TransUnion. You can do this once a year through the Annual Credit Report website. Review the reports thoroughly, looking for any errors or discrepancies in your personal information, credit accounts, and payment history.
Common mistakes on credit reports can include incorrect personal information, such as an incorrect name, address, or social security number, as well as inaccurate credit account information, such as late payments or accounts that do not belong to you.
If you find any mistakes, you should dispute them with the credit bureau that provided the report. The bureau will investigate the error and correct it if necessary.
Checking your credit report regularly, and ensuring its accuracy is an important step in maintaining a healthy credit score and financial health.
Consolidating high-interest debt into a single lower-interest mortgage can be a smart financial move for many people. By doing so, you may be able to reduce your overall interest rate and potentially save thousands of dollars in interest charges over time.
Yes, mortgage rates have gone up over the last year, but they are still considerably lower than other high-interest forms of debt, such as credit cards. If you have multiple high-interest debts, consolidate them into a single lower-interest mortgage, which will help you save money on interest and simplify your payment. By consolidating your debts, you rationalize your finances, and put the focus back on paying off your debts more swiftly.
First, it's important to review your current budget and identify areas where you can reduce your expenses. This may involve cutting back on discretionary spending, such as entertainment or dining out, or finding ways to lower your fixed expenses, such as your utility bills or insurance premiums.
Audit your credit card statement. Are you really using all those subscriptions? The gym, streaming services, apps, all these little payments add up monthly. If you aren’t using them, cancel them, and free up some extra cash each month.
With higher interest rates affecting those with variable mortgages, creating a budget is crucial to your finances in 2023. This will give you a better idea of how much money you will need to allocate towards your mortgage each month.
If you have a mortgage renewal coming up, it is a great time for us to touch base so you get an idea of what your new mortgage payments will be.
Once you have a clear understanding of your new mortgage payments and revised budget, you can begin to make adjustments and prioritize your spending. It may be helpful to create a spreadsheet or use a budgeting app to track your expenses and ensure you are staying within your budget.
Building an emergency fund is a critical step in achieving financial stability and resilience. Here are some tips to help you get started:
Remember, an emergency fund is meant to be used for unexpected expenses or financial hardships, not for discretionary spending. By prioritizing your emergency fund and building a strong financial foundation, you'll be better equipped to handle any unexpected challenges that come your way.
Getting overwhelmed, give us a call or email us, and we will happily look at what can done for you. The goal is financial peace of mind; feeling secure and confident in your financial situation, both in the present and for the future.
Fred and Martin