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.

Trim

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.

Cut
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.

Shred

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.

Organise

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.

Inventory

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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