4 ways to organize your finances for spring

The last cold spell of winter is fading away. In the spirit of spring cleaning, why not extend a fresh start with your finances?

Veetahl Eilat-Raichel, financial entrepreneur, CEO of Sorbet and former CMO of a major credit card company, suggests now is the perfect time to detox your credit “closet” and plant the seeds for a prosperous financial future. Let’s take a look at Eilat-Raichel’s top tips for making your personal finances bloom this season.

1. Reset your budget

First, get your budget in order. This isn’t just about saving a few dollars on groceries. This is a holistic reassessment of financial flows. Are you signing up for a service you rarely use? Now is the time to set them free.

Also use the magnifying glass for your debt-to-income ratio. If your debt is eating up more than its fair share of your income, it’s time to rethink your strategic plan. Think of it as organizing your financial closet.

2. Credit evaluation

Credit ratings are very important in today’s economy, especially with U.S. credit card debt at an all-time high. Eilat-Raichel’s advice emphasizes the importance of regular credit checks to prevent financial health. These checks serve as a diagnostic tool, helping you monitor your credit utilization and detect early signs of debt.

This proactive action is essential to prevent minor issues from growing into major problems, to stay on top of your finances, and to proactively protect against potential instability. Once you know your credit status, it’s important to take concrete steps to improve or maintain your financial health. These include:

• Devise targeted repayment strategies for high-interest debt and adjust budgets to discourage future borrowing.
• For those with higher credit, you may want to explore options, although cautious, such as requesting a credit limit increase from your card issuer to improve your credit score.

These efforts, along with ongoing monitoring of your credit scores and reports, not only translate the insights gained from your credit assessment into effective actions, but also promote a proactive stance in managing and improving your financial well-being.

3. Access “hidden” money with PTO

Here are some surprising statistics: Employees only use 45% of their earned PTO days. This is thousands of dollars spent on unused resources sitting idle. Think of it as a loose variation of a sofa cushion, but on a larger scale. Eilat-Raichel suggests cashing out this “hidden” money for debt repayment or saving it for a sunny summer vacation.

How do I do it? Any employee who works for a company with a PTO rollover plan can apply to use Sorbet directly rather than through their employer. Employees can essentially borrow against the cash value of their unused PTO. You then repay the Sorbet when you leave the company and receive your PTO payout, or two years later, whichever comes first. This is a way to reward yourself for your financial diligence.

4. Avoid lifestyle changes

Ah, the lifestyle has become creepy. It’s an insidious financial phenomenon that can eat away at your savings as quickly as a spring shower washes away pollen. With online shopping available with just a tap, resisting temptation has never been harder. Eilat-Raichel offers some clever hacks to kick your old spending habits.

• Add a barrier to mindless spending by removing ApplePay from your phone.
• Ditch the automatic credit card payment option in your browser. Paying manually can help you avoid unnecessary purchases.
• Click Unsubscribe on the promotional email.

A spring financial cleanup isn’t something that will make a huge difference overnight. It’s about securing inventory, cutting off excess, and setting the stage for growth. It’s not just about getting organized by resetting your budget, assessing your credit, accessing hidden funds through PTO, and avoiding lifestyle changes. You are laying the foundation for financial health that can last all year long. So as the days get longer and the air warms, take a moment to think about how you can improve your financial habits. After all, a little spring cleaning can bring many new beginnings.

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