Springtime has been long associated with home cleaning. Most households start taking out their cleaning supplies and scrubbing their homes clean to bid farewell to winter and prepare for the warm weather. If you’re cleaning up your home to welcome the new season, why leave your finances behind?
Like your home, your finances can also get cluttered each season. When paperwork piles up, budgets become outdated, and finances are tight, it’s important to take the time to start cleaning up, especially if your financial situation is affecting your mental health. According to the Money and Mental Health Policy Institute, there is a correlation between mental health and money problems, as “46 percent of people in problem debt also have a mental health problem.”
If your finances are stressing you out, it may be time for a cleanup, and you can learn more about why your finances should be at the top of your spring-cleaning list below.
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Improve Mental & Physical Health
Messy finances can significantly impact your mental health, which can eventually influence your physical health. For example, if you have many credit card bills or loans, or a habit of exceeding your budget, you may feel stress, leading to stress eating and weight gain. Although the impact of messy finances isn’t the same for everyone, cleaning your finances can positively influence almost anyone.
When you clear up debt, create a reasonable budget, and avoid late fees by automating payments, you will feel more relaxed, positively impacting your mental and physical health. In addition, financial spring cleaning also reduces physical clutter at home, which is also good for mental health.
Reach Financial Goals Sooner
Cleaning up your finances can involve creating a clearer action plan for your future goals. This can involve a layout of how much money to save each month for a vacation, home purchase, or another major life milestone. Organizing your finances will help you reach your financial goals sooner by allowing you to eliminate any hurdles that may be limiting your saving amount.
Make Debt Payment Plans
If you have loans or other forms of debt, such as an unpaid credit card bill, the lenders are collecting interest, which may increase due to late payments or fluctuating interest rates. Cleaning up your finances will likely involve sorting debt, reducing the risk of high debt-related costs.
Create a debt payment plan by consolidating your debt. This involves taking out a new loan to pay off existing debt. For instance, if you have a high credit card bill, explore your borrowing options and find a short-term loan to help you pay the bill. Choose a reputable platform like FlexMoney that offers fast and simple online personal installment loans. Pick the amount you need to pay off your credit card, use their streamlined application process to apply, and wait for the funds to arrive after the platform’s automated system approves your loan.
Eliminate Unnecessary Costs
When your finances are cluttered, you may need a clearer picture of where your money is going. This often results in unnecessary costs if you exceed your budget, forget to pay bills on time, or subscribe to unused services. According to a survey, 62 percent of consumers waste money on unwanted subscriptions because they don’t cancel automatic renewals.
Clearing your finances will involve sorting out which payments are necessary, allowing you to make prompt payments and reduce the risk of missed payments. It can also help you identify which services you are paying for but not using, eliminating unnecessary costs, and helping you strengthen your finances.