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How to Clean Up Your Budget

As opposed to your finances, it is easy to see when you home or work area is messy. It quickly becomes obvious when you live among the muddle every day. Your money can become disorderly without you even realising it and unfortunately it can lead to much more serious problems than a messy room. However, with some tidying up you can make sure you are not wasting or losing money.


Take a good look at your financial situation. Look at your income and your expenses. Put everything together into a budget and balance it. Take all current credit card balances, bank statements, and investments into account. This should give you an accurate picture of the money that you have coming and going. As you clean, up look at any unnecessary expenses and eliminate what you don’t need.

How to Clean Up Your Budget

One cause for messiness or confusion in personal finances is having too many credit cards. An excess in the amount of cards you have can lead to some serious financial issues if you lose track of even just one of them. Credit card debt can be an incredibly dangerous thing to your money. If you miss payments and let balances roll over from month to month the interest alone can become overwhelming. If something like this has happened to you, you should work to remove the debt as quickly as possible. If you can’t see a way out or if multiple debts or cards are weighing you down there are organisations that offer free debt consolidation and advice that may be able to help. You really need only one card. So if you have more than that cut them up and pay them off.


Look around your home or office. Are there piles of sensitive paper work lying around? If so, this will be a case when your budget cleanup will also be a literal clean up. Make sure that none of your financial papers fall into unscrupulous hands. Shred any bank statements, or documents that you don’t need anymore.


Like credit cards, bank accounts are something that you shouldn’t have in excess. Having too many bank accounts leads to similar problems that having too many credit cards would; it is hard to keep track of them. Plus more bank accounts mean more bank account fees. It’s probably a good idea to have no more than two, especially if you are using several for the same purpose. Closing any accounts that are unnecessary will really streamline your personal finances.


When people look at their financial situation they often overlook their physical assets. That is, furniture, coin collections, jewelry or anything that could have value. It is good to take these things into account because they can play an essential role in bailing you out of tough financial times if it were to become necessary. Also, you should take stock of your stocks. What investments have you made? Make sure you know where you money is invested and whether or not it should be there. You may as well liquidate anything you don’t need.

So before you begin your budget cleanup take some of these tips into consideration and see how much money some simple organisation can save you.

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