Could your finances use a little cleaning up? Now is the best time to trim your budget to prepare for the upcoming holiday season—it’ll be here faster than you think! Before you jump into the fray, check out these three financial cleanup tips.

Pay off Debt

Debt consolidation is the most convenient and cost-effective way of getting out of debt. Transferring your debt from multiple financial institutions to a single low-rate loan or card, such as Yolo Federal’s Signature Loan or Visa® Gold Credit Card, could save you money on interest. By having only one payment, you’ll reduce the risk of accidentally missing or forgetting a payment. Plus, we could save you even more with no annual fee or balance transfer fee.

Make a Budget 

While budgeting may not be the most exciting thing to do, it is one of the best ways to curb overspending. Create a list of your bills and other monthly expenses. Look for opportunities to cut back or eliminate. For example, cooking at home can be less expensive than ordering delivery, and you’ll get more bang for your buck (and leftovers make great next-day lunches!). Other considerations include any changes you’ve made to your spending this year, like expanding your streaming services. The key is to find a place where you can adjust your spending by asking yourself, “does this bring me value?” If the answer isn’t yes, then you’re probably good to let it go. Click here for other budgeting resources.

Paycheck Breakdown

The 50-25-25 rule helps set aside what you should be spending on your needs, wants, and rainy-day funds. 50% of your income should go to necessities such as food, your Home Loan or rent payment, debt, and anything else considered essential. 25% of your income can be spent on things you want, such as entertainment, like streaming services. The remaining 25% should be split between a rainy-day fund—to cover emergencies—and your savings goals. A skilled budgeter may reduce the percentage of income spent on wants and put it towards paying off debt faster or increasing the amount allocated for savings.

It’s a wise idea to “clean up” finances throughout the year. Budgets are fluid and should be continuously updated or adjusted to fit your situation. As we continue to find our financial foothold during this ever-changing time, and as the holiday season approaches, consider utilizing these tips to set yourself up for financial success during the most expensive time of the year. If you would like help planning out your budget, check out our blogs on Financial Health During a Crisis and Budgeting 101, or schedule an appointment with a Yolo Federal Representative.