A cluttered house or cluttered mind can make you feel unproductive. It’s the same thing when your finances are disorganized.
Decluttering can come in many forms, from sorting documents to better understanding and streamlining your budget.
Reassess your budget
Even if you’ve already prepared a 2022 budget, it’s a good time for another look. Review your spending, income and your savings over the past three months. What is working and what is not working? Take stock of what your financial life may look like over the next few months and make any changes in your budget to reflect that.
If it helps you feel more organized, consider using a budgeting app, such as the Financial Management Tools inside your online/mobile banking suite.
Declutter unnecessary expenses
You may be spending money on things you forgot about or don’t necessarily need. Go through your expenses and see what could be cut. One place could be recurring expenses that are often forgotten about, like subscription services.
Organize your documents
It’s also important to actually be organized in how you are storing and accessing the information. Since many documents still come through the mail, you’ll want to sort these documents by category.
About once a week look through each category folder, shred what you don’t need, and scan the documents you want to keep onto an encrypted drive.
The only thing to physically hold onto are items like your estate plan and mortgage documents. Any printed annual documents, like tax returns, can go into a binder labeled with the year.