Often, when you think of “Spring Cleaning” you think of tidying up around your home. Have you ever thought about spring cleaning your finances? Personal finance is involved in many tasks including clearing out paperwork, crossing items off your to-do list, and setting goals and priorities. The American Bankers Association has developed six tips for to help you organize your finances.
Review your budget. A lot can change in a year. If you’ve been promoted, had a child, or become a new homeowner or renter, be sure to update your budget. Determine what expenses demand the most money and identify areas where you can realistically cut back. Develop a strategy for spending and saving – and stick to it. Need help organizing your budget? View our personal finance manager, PerForM right in your myBRB app! Click here to learn more.
Evaluate and pay down debt. Look at how much you owe and what you are paying in interest. Begin paying off existing debt, whether that’s by chipping away at loans with the highest interest rates or eliminating smaller debt first.
Set up automatic bill pay. By paying recurring bills automatically on the same day each month, you’ll never have to worry about a missed payment impacting your credit score. Plan out your automatic payments to ensure your checking account has an adequate amount of funds when the payments are scheduled to be withdrawn.
Save for emergencies. About 43 percent of Americans are positioned to cover a $1000 emergency expense, while 27% have no emergency savings at all. You can prepare by opening or adding to a savings account that serves as an emergency fund. Ideally, it should hold about three to six months of living expenses in case of sudden financial hardships like losing your job or having to replace your car. Reach out to your local BRB representative to find out which savings account is the best for you.
Go digital. Implementing online bill pay will help keep your physical and financial house clean and organized and will help protect you from fraud. Utilize the myBRB app to check your balance, pay your bills, transfer funds, deposit a check and send money to friends from wherever you are.
Check your credit report. Every year, you are guaranteed one free credit report from each of the three credit bureaus. Take advantage of these free reports and check them for any possible errors. Mistakes can drag down your score and prevent you from getting a loan or cause you to pay a higher than necessary interest rate.
