Enjoying coffee at home can save you money

Financial spring cleaning should include your car insurance

Much of the country is still experiencing snow and cold temperatures, but spring is actually just a month away. When completing your traditional spring-cleaning tasks, such as vacuuming the house, removing junk from the garage, and sprucing up the yard, you may also want to consider how you can improve your personal finances. 

One area you might want to look into is your car insurance. If you feel as though you are spending too much money, this is a good time to evaluate your policy. Comparing online car insurance quotes is a great way to see if you can save money by obtaining a new plan, as you are able to see the price and coverage offered from the comfort of your own home. Saving a few dollars a month on your car insurance can be beneficial for your budget, so don't think a small price reduction won't help. 

The following are some other steps you could take when evaluating your financial situation this spring:

Rid yourself of high-interest credit cards

One of the best money-savings tips we can give you is to reduce the balances on all of your high-interest credit cards, according to Time Business and Money. The best move would be to eliminate all of your debt, but if that isn't possible, do whatever you can to get them as low as you can. The last thing you want to have happen is high credit card debt putting you in a position where you might miss a mortgage or car insurance payment. 

Add to or establish an emergency savings fund

Having emergency savings is important to people of all financial statuses, according to Smart Asset. So, if you don't have at least three months of expenses in your bank account, you may want to do what you can to reach this figure. Whether that means cutting back on some luxuries or increasing your savings rate, you will likely thank yourself in the future for making these sacrifices. Nothing is more debilitating than running into an unexpected expense, and turning to your savings account that has $0. This could lead to a situation where you have to take on high-interest debt to stay current on bills or face costly late fees and penalties.

Start making your coffee at home

Americans love coffee, and it is costing them thousands of dollars each year. Instead of making a home brew, many go to Dunkin Donuts or Starbucks, which costs more money every day. To see how much money you waste a week on coffee, take a total of the amount you spend. The following week, buy your own coffee (and brew at home), and compare the costs. Chances are your home brew will be much more affordable. If you are so keen to go to Starbucks or Dunkin Donuts, both chains offer bags of coffee beans, or grinds, so you can enjoy their beverages in the comfort of your own home.

Take steps to boost your credit score

One of the most important numbers in your financial future is your credit score. It will be used to determine your eligibility for credit cards, mortgages, and even car insurance. For this reason, you may want to take steps to boost your score when spring cleaning your finances. Paying down your debt is a great way to achieve a higher score, as your credit utilization is one of the biggest factors that is used to calculate this figure. You could also make sure you never miss a payment on any of your bills by setting up email and text reminders.