BY DANIEL RODRIGUEZ | DR. BUDGETS

Spring Cleaning can mean more than buckets, mops, and brooms! There are many reasons why this time of year is great for cleaning up your finances:

• We’re 4.5 months into the year, so you are starting to get an idea of how the year is shaping up, including earnings, spending, and debt repayment.
• You’ve just done your taxes (or filed an extension) and can start getting organized NOW for next year’s taxes.
• There’s something invigorating about the time between winter and summer – birds are chirping, flowers are blooming, and you might feel motivated to do some spring cleaning!

Here are some things to consider when you do your financial spring cleaning:

Review Budget (Spending Plan)

We are about a third of the way through the year, so now is a good time to check in with your spending thus far. How are you doing with your spending this year? Have you spent more than anticipated in some areas? If so, consider spending less in those areas during the next few months to balance your spending in those categories. Have you spent less than anticipated in some areas? If so, consider setting that excess money aside in case you end up needing to spend in those categories later this year. Remember to stick to your spending plan even when you seem to have the extra money in your bank account…that “extra” money will come in handy when those semi-annual or annual payments are due (or over the holidays!).

Declutter Paper

Even with all our technology and cloud storage solutions, we are still overrun by paper! Paper clutter can be stressful, and it is probably costing you money (and time!). Consider using this time of the year to declutter your paper. Some examples of things you may find include bills, bank statements, notifications for membership renewals, and payments for Flexible Spending Account (FSA) expenses. You can scan, then shred items that you need (be sure to back up the files!) and toss or shred items you don’t need anymore. For more info on what to toss and what to keep, check out these articles from Forbes and USA Today.

Return, Sell or Donate

Do you have unwanted stuff lying around the house? Are there things you haven’t used in over a year? Those items can sometimes be returned (if you purchased them recently), sold, or donated. If you can return the item, that will be your best option since you will be able to get back what you paid for it. If you have nice clothes, here are 13 of the best places to sell used clothes for money. For other items or electronics, consider using Craigslist or eBay. And if you have unwanted gift cards, try a website like CardCash to get cash for those.

Improve Credit

This is a great time of the year to review your credit. First, check your credit reports for accuracy at annualcreditreport.com. If you want to check your credit reports for free throughout the year, check one of the three credit reports every four months (for example, Experian in April, Equifax in August, and TransUnion in December). To help increase your credit score, try to bring your debt utilization rate under 30%. Here are 5 tips for winning the credit utilization game. Finally, pay your bills on time every time! According to Investopedia, paying your bills on time is the most important component of your credit score. With that said…

Automate Bill Payment

If you can pay most or all your bills automatically, that can streamline your finances, reduce stress, and improve your credit. You can also avoid those dreaded late fees! If you are concerned with having enough in your checking account when your credit card payments come due each month, consider setting up your automatic payment for the minimum payment, and then paying extra toward your cards manually when you have the additional funds to pay down your debt. A bonus tip: save automatically! If you can automatically save money, it has been proven to increase your overall level of savings. Just be sure to pay off that high-interest debt first!

These are my 5 tips for financial spring cleaning. Happy Spring!