reviewing home finances spring cleaning them together

Spring Cleaning Your Finances: Revitalize Your Financial Health

My Annual Financial Checkup: Decluttering My Money (and Yours!)

Every spring, right before tax season hits, I have a little ritual that’s as much a part of the season as blooming flowers and sunshine. I grab my laptop, fire up my trusty Excel spreadsheet (that tracks all my money moves), and settle in for my annual finance check-up. This isn’t just any spreadsheet; it’s like my money diary, showing where every dollar comes and goes, and it’s my secret to making plans for the future.

Armed with a strong cup of coffee, I get to work. This is my time to be real with myself about the previous year’s spending. Did I save as much as I wanted? Did I blow too much on things I didn’t really need? But hey, it’s also time to high-five myself for those wins, like hitting a savings goal or finally ditching some nagging debt. I even take a moment to face the not-so-great moments (hello, holiday overspending!), but the point is to learn and get back on track.

Next comes the planning. I figure out how much I expect to make and decide how much I’m going to save and invest. Then I make a plan to tackle any debts, especially if I went a little overboard in the winter (definitely guilty!).

But this isn’t just about number crunching. It’s about setting those big goals. It’s about making sure my money is working toward the things I dream about, whether it’s a down payment on a house or just feeling prepared for life’s surprises.

When I’m done, I always feel this sense of relief – like I’m the one calling the shots with my money, not the other way around. Doing this every year is a constant reminder that I can make smart choices to reach my goals. It’s my financial spring cleaning, and just like tidying up my place makes me feel refreshed, getting my finances in order makes me feel ready for whatever life throws my way.

Spring Cleaning Your Finances: More Than Just a Metaphor

Just like a good spring cleaning clears away the cobwebs and clutter in your home, giving you a sense of control and creating space for what’s important, a financial spring cleaning does the same for your money. It’s about clearing away outdated financial habits, getting rid of unnecessary expenses, and revitalizing your money goals.

Prioritizing healthy financial habits now creates the foundation for a future where you’re less stressed, more secure, and able to go after those things that truly matter to you. It’s a bit like building a strong, sturdy house one brick at a time.

Spring stands for new beginnings and a renewed energy. Channel that feeling into your finances. It’s the perfect time to take stock, gain clarity, and jumpstart your journey towards reaching your financial dreams.

Feel the Difference: Why Financial Health Matters

Picture this: Instead of constant money worries weighing you down, you feel a sense of calm and confidence because you’ve taken charge of your finances. That alone is a huge benefit!

Having a clear understanding of where your money goes and a plan for the future gives you back a sense of control. You’re making wise choices instead of just reacting to your bank balance.

Small savings become a big deal! Regularly setting some money aside not only provides a sense of security when those unexpected expenses pop up, it’s also building towards the things you aspire to.

Speaking of dreams, financial health is the key to making them a reality. Whether you’re saving for your first home, want a stress-free retirement, or have other big goals, understanding and managing your money is what gets you there.

Dusting Off the Budget

My annual budget review is a bit like airing out every nook and cranny of my finances! I get super detailed about where all my money comes from and where every last penny ends up. It might seem a bit intense, but this level of detail allows me to make sure that my money is working as hard for me as I work for it. Plus, it’s a chance to give myself a little pat on the back for sticking to my goals!

Let’s talk about those non-essential expenses that sneak into our lives. It’s okay to enjoy the occasional treat, but it’s those recurring “wants” that can derail our budgets. Think things like takeout meals, subscription boxes you don’t use, or impulse purchases when you’re out and about.

The truth is, even those small daily expenses add up to a surprising amount over a month or a year. Imagine if that $4 latte you grab most mornings went into a savings account instead! Now that’s a vacation fund in the making!

This is why it’s so important to pay attention to those “spending leaks.” Comb through your bank and credit card statements and ask yourself: Is this subscription still worth the cost? Am I getting the most out of this gym membership? You might be surprised at what you find!

Ready to tackle that debt and reclaim your financial power?

Tackling High-Interest Debt

Let’s talk about that high-interest debt. It’s like this weight dragging you down, making it harder to get ahead financially. Imagine paying off a $1,000 credit card balance with a high-interest rate. By focusing on eliminating that debt, you can save hundreds of dollars in interest that would otherwise just disappear! That’s extra money for those things that matter to you.

There are strategies for tackling debt, like the “snowball” and “avalanche” methods. The best approach is the one that motivates you to stick with it. We’ll dive into those details in a bit.

A word of caution about debt consolidation: It might seem tempting to roll all your debts into one, but it’s important to be careful. If you consolidate and then end up spending more, you could end up in an even worse position. Consolidation can be helpful if it gets you a lower interest rate or simplifies your payments, but it’s crucial to choose the right type of consolidation. With traditional loans, it can be tempting to rack up new charges, leaving you in worse shape than before.

This is where credit counseling consolidation stands apart. A reputable credit counseling program will often restrict further spending on consolidated accounts, helping you break the debt cycle. Plus, they provide guidance and support for addressing those underlying spending habits that got you into trouble in the first place.

spring cleaning finances desk cluttered but piggy bank shining and coins expressing money saved

Sweeping Up Savings

Don’t underestimate the power of starting small when it comes to an emergency fund. Even saving $10 or $20 a week adds up! Imagine that over a year – that’s hundreds of dollars set aside for when life throws a curveball your way.

Having that emergency fund provides incredible peace of mind. Instead of panicking over an unexpected car repair or a sudden job change, you know you’ve got a buffer in place. That’s worth a lot!

Here’s where automatic savings become your secret weapon. By setting up an automatic transfer to a separate savings account, you save without even thinking about it. It’s like those extra dollars magically appear, building your fund while you focus on other things.

Setting this up is easier than you think! Most banks allow you to schedule transfers, or there are many online tools that do the same. Start with a comfortable amount, and as your income grows, you can “bump up” those automatic contributions.

Polishing Your Financial Goals

Think of your financial goals as a roadmap, not a rigid set of instructions. Your priorities shift as life happens — it’s totally normal! Regularly review your goals to make sure they still match what you truly want out of life.

As your goals evolve, your budget needs to change, too. Maybe you’ve got your sights set on a down payment, which might mean dialing back on nights out. By keeping your budget adjusted to those big goals, you’re increasing your chances of reaching them.

It’s important to build flexibility into your financial goals. Unexpected things happen, and life doesn’t always cooperate with your perfectly crafted plans! Instead of getting discouraged when you need to adjust timelines, focus on the fact that you’re still making progress, even if it takes a bit longer than you first thought.

Sprucing Up Your Credit

Every year, I make checking my credit reports a non-negotiable task. It might not be the most exciting thing on my to-do list, but it’s incredibly important. I go through each report line by line, looking for anything that seems incorrect or outdated. Catching those errors early on can protect me from headaches down the line.

Why is this so important? Your credit score has a huge impact on your financial life. It can affect loan approvals, interest rates, and even how much you pay for insurance. Think of good credit as your financial passport, opening up better options and opportunities.

If you spot errors on your credit report, don’t panic! There are steps you can take to dispute them. The process might seem a bit bureaucratic, but it’s worth it to fix any mistakes that could be dragging down your score. Remember, this is about protecting your financial well-being.

Ready to turn your financial goals into reality? Whether you need budgeting tools, strategies to tackle debt, or a little personalized guidance, Money Fit has your back. Let’s start building your bright financial future!

It’s never too late (or too early!) to start your financial spring cleaning. Remember, even small actions add up to significant changes over time. If you’re ready to take charge of your finances and reach your goals, Money Fit is here to help. Bookmark Money Fit to explore free tools, resources, and personalized counseling options.

About the Author

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Client Credit Report Authorization

You hereby authorize and instruct Debt Reduction Services, Inc. (DRS, dba Money Fit by DRS) and/or its assigned agents to:
  • Obtain and review your credit report, and
  • Request verifications of your income and rental history, and any other information deemed necessary for improving your housing situation (for example, verifying your annual property tax obligations and homeowner’s insurance fees)
Your credit report will be obtained from a credit reporting agency chosen by DRS. You understand and agree that DRS intends to use the credit report evaluate your financial readiness to purchase or rent a home and/or to engage in post-purchase counseling activities and not to grant credit. You understand you may ask any questions pertaining to your credit report. However, while DRS will review the information with you, the company is not able to furnish you with a copy of your credit profile. You hereby authorize DRS to share your information from your credit report and any information that you provided (including any computations and assessments produced) with the entities listed below to help DRS determine your viable financial options.
  • Banks
  • Counseling Agencies
  • Debt Collectors
  • Landlords
  • Lenders
  • Mortgage Servicers
  • Property Management Companies
  • Public Housing Authorities
  • Social Service Agencies
Entities such as mortgage lenders and/or counseling agencies may contact your DRS counselor to evaluate the options for which you may be eligible. In connection with such evaluation, you authorize the credit reporting and/or financial agencies to release information and cooperate with your DRS counselor. No information will be discussed about you with entities not directly involved in your efforts to improve your housing situation. You hereby authorize the release of your information to program monitoring organizations of DRS, including but not limited to, Federal, State, and nonprofit partners for program review, monitoring, auditing, research, and/or oversight purposes. In addition, you authorize DRS to have your credit report pulled two additional times to conduct program evaluations. You also agree to keep DRS informed of any changes in address, telephone number, job status, marital status, or other conditions which may affect your eligibility for a program you have applied for or a counseling service that you are seeking. Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Client Privacy, Data Security, and Client Rights Policy

NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

Debt Reduction Services, Inc. (DRS) has put into place policies and procedures to protect the security and confidentiality of your nonpublic personal information. This notice explains our online information practices and how we use and maintain your information to conduct our financial education and credit counseling sessions and to fulfill information and question requests. This privacy policy complies with federal laws and regulations.

To provide our financial education and credit counseling services, we collect nonpublic personal information about you as follows: 1) Information we receive from you, 2) Information about your transactions with us or others, and 3) Information we receive from your creditors or a consumer reporting agency. We do not share this information with outside parties.

We use non-identifying and aggregate information to better design our website and services, but we do not disclose anything that could be used to identify you as an individual.

You hereby authorize DRS, when necessary, to share your nonpublic personal, financial, credit, and any information that you provided (including any computations and assessments produced) with the following entities in order to help DRS provide you with appropriate counseling or guide you to appropriate services: third parties such as government agencies, your lender(s), your creditor(s), and nonprofit housing-related and other financial agencies as permitted by law, including the U.S. Department of Housing and Urban Development.

To prevent unauthorized access, maintain data accuracy, and ensure the correct use of information, we have put in place appropriate physical, electronic, and managerial procedures to safeguard and secure the information we collect online. We limit access to your nonpublic personal information to our employees, contractors and agents who need such access to provide products or services to you or for other legitimate business purposes.

Debt Reduction Services, Inc. complies with the privacy requirements set forth in the HUD housing counseling agency handbook 7610.1 (05/2010), including the sections 2-2 Mc, 3-1 H(2), 3-3, 5-3 F, and Attachment A.5. At all times, we will comply with all additional laws and regulations to which we are subject regarding the collection, use, and disclosure of individually identifiable information.

  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

Please refer to DebtReductionServices.org for details of our services.

  1. Limits: Our services are limited to our normal weekday business hours. We do not provide individual counseling or education services after hours or on weekends, although our education courses are available 24/7.
  2. Fees: We do not charge fees for our financial management counseling and education. However, if you use them, you may have to pay for our Debt Management Program, Student Loan Counseling, Bankruptcy Certificate Services or certain financial education courses (homebuyer education, rental topics, fair housing, predatory lending, and post-purchase-non-delinquency including home maintenance and/or financial management for homeowners).
  3. Records: We maintain records of the services you receive, including notes about your progress or other relevant information to your work with us. You have the right to access and view your records by making a request to your counselor.
  4. Confidentiality: We respect your privacy and offer our services in confidence with the understanding that we may share such information with auditors and government regulators. Certain laws or situations may also lead to disclosing confidential issues, such as those involving potential child abuse or neglect, threats to harm self or others, or court subpoenas.
  5. Refusal of Services: You have the right to refuse services without any penalty or loss.
  6. Disclosure of Policies and Practices: You will be provided our agency disclosure statement.
  7. Sharing of Information: Sometimes we will need to contact other agencies or we may need to share your information, including your records, with other agencies or with regulators. We will do this only if you sign this form that gives us permission except for limited reasons; please see # 5 above for examples of such situations.
  8. Other: You have the right to be treated with respect by our staff, and we expect the same from you in return. We encourage you to always ask questions if something is not clear. We also encouraged you to express your thoughts and advocate throughout our services.

You acknowledge that this authorization will remain in effect for the duration of time that DRS serves as your housing counselor or financial education provider. You also acknowledge that should you wish to terminate this authorization, you will notify DRS in writing.

Disclosure  Statement

NOTE: If you have an impairment, disability, language barrier, or otherwise require an alternative means of completing this form or accessing information about our counseling services, please communicate with your DRS representative about arranging alternative accommodations.

Program Disclosure Form

Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

No Client Obligation

The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

RentalFair HousingPredatory Lending / HOEPAPost-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. creditbudgetinghomeless preventiondebt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

RentalFair HousingPredatory Lending / HOEPAPost-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. creditbudgetinghomeless preventiondebt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).