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Nothing calls for a better time to get organized like the spring cleaning season. Rainy weather indicates a good opportunity to spend a relaxing day indoors, tidying up your house or cleaning out your closet.
It also serves as an opportunity to take a closer look at your finances. With winter winds down and vacation expenses paid off, warmer weather forecast and summer cruises in, you’re in the middle of getting your money in order.
Below, personal finance experts think of three ways to clean up your personal finances this season.
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1. Arrange your taxes
With the tax deadline always falling in April, spring also means tax season. Now is the time to decide what you’ll do to credit your taxes and put them behind you until next year.
If you are preparing for Pay a tax bill, decide how you’ll cover the cost (paper check, credit, deduction, or IRS payment plan), and if you’re waiting for a tax refund, decide how you’ll use that windfall money.
Sacha Grabenstetter, certified financial advisor at eMoney Advisor, tells Select. “Once they receive a refund—or not—they should determine how much tax is coming out of their paycheck and consider resubmitting their W-4 form for changes for tax year 2022.”
And if you haven’t filed your taxes yet, you’ll need to jump on it because the April 18 deadline is fast approaching. Tax software such as TurboTax®, H&R Block®, Credit Karma Tax, and TaxSlayer® can help you file state and federal returns quickly and accurately while still maximizing your deductions for a greater tax refund.
While you’re at it, avoid the scramble to prepare tax documents next year by creating a “tax toolkit” now where everything is centralized in one place, suggests Marsha Barnes, a certified financial social worker in partnership with Wells Fargo and founder of The Finance Bar.
TurboTax
On the safe TurboTax website
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cost
Costs may vary depending on the plan selected
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Free version
Yes (for simple returns** only)
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Mobile Application
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live support
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Better rating for business office
2. Get rid of your debt
In the spirit of cleaning, there’s one thing we know can make things messy very quickly: ballooning debt.
Now is the time to organize your debts according to how you want to pay them off.
“Choose the debt with the lowest balance, highest interest rate, or the debt that causes you the most anxiety,” Barnes says. “There are no perfect rules where to start. Start with a desire to boost your financial confidence.”
No matter which debt you choose to pay off first (or work to pay off first), make sure your next step is to create a plan to pay off other remaining debt burdens. For example, let’s say you have outstanding credit card balances and student loans. The smart move is to pay off credit card debt as soon as possible from then on Credit cards have much higher interest rates, but then you have a plan to eventually move into paying off your student loan—especially since the federal student loan freeze is set to expire on May 1.
Grabenstetter recommends setting aside student loan funds in your planning to ensure they can make payments when the freeze is over. You may want to consider using a student loan repayment app like Chipper that collects daily surplus change of users to constantly get rid of their student loan debt.
3. Take care of your summer budget
With the inches of summer approaching, you’re likely gearing up for a much-needed vacation away, as well as any other sunny weather activities.
Instead of waiting until June, prepare your summer budget in advance for a season to help you get the most out of the money you pay.
“Allocate more money to these goals in the coming months, so you don’t have to miss out because your spending doesn’t allow for it,” says Grabenstetter. So she suggests Budget for the little things you end up buying, like sunscreen, bug spray, snacks, sunglasses, and beach towels.
And when it comes to making these purchases, use a credit card that gives you either cash back or travel rewards for your spending. Chase Freedom Unlimited® does both, offering cardholders 5% cashback on travel purchased through Chase Ultimate Rewards® (where you can cash back, travel, gift cards, and more), and 3% cashback on drugstore and dining purchases ( Including Take-Out and Eligible Delivery) and 1.5% cash back on all other purchases.
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Rewards
Enjoy 5% cashback on travel purchased with Chase Ultimate Rewards®, the #1 rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on pharmacy and dining in restaurants purchases, including takeout and eligible delivery, and 1.5% on all other purchases
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welcome bonus
Earn an extra 1.5% on everything you buy (up to $20,000 you spend in the first year) – worth up to $300 cashback. This is 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on restaurants and pharmacies, and 3% on all other purchases.
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Annual fee
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April Introduction
0% for the first 15 months of account opening on purchases and balance transfers
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normal april
15.24% to 23.99% variable
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Balance Transfer Fee
An introductory fee of $5 or 3% of each transfer amount, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
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Foreign Transaction Fee
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Credit required
Barnes adds that vacationers eager for the summer holidays can also experiment with value-based spending next season, using the first month of spring to brainstorm their summer wishes.
“Write these items or experiences on a piece of paper with the approximate costs next to them,” she explains. “In order of priority, include the best out of three experiences in your budget. Do your best to avoid forcing them to fit in. The overall goal of budgeting is to provide a handrail, or financial security, around your money and habits.”
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This spring, put your finances in order by making sure you take care of your tax fees, organize your debt to pay it off, and budget for your summer travels beforehand.
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Editorial note: The opinions, analyses, reviews or recommendations contained in this article are those of the editorial board alone, and have not been reviewed, approved or otherwise endorsed by any third party.