6 ways spring cleaning can save money and reduce debt - ABC 40 KRHD-TV - Bryan/College Station News and Weather |

By Andrew Housser

Everyone knows spring cleaning can freshen rooms and get the dust out. But carefully thought out, spring cleaning can also help you pay off credit cards or save for a rainy day. As April – National Financial Literacy Month – begins, it is the perfect time for some spring cleaning that can benefit your financial bottom line.

1. Sell unused items. For most people, items pile up long after you stop using them. Move through the rooms in your home and methodically clear out those unused things. Items with value – whether tools for the hobby you wanted to pursue, clothes you do not wear, or unneeded furniture – may be sellable at a yard sale, a consignment shop, or online via sites such as eBay or Craigslist. Use your earnings to repay debt or stash in a savings account.

2. Donate the rest (and take a deduction). Donate items that are not worth selling to a charitable organization. You can track your donations with convenient tools such as ItsDeductible.com (or its mobile phone app). If you itemize deductions, you can take the value of your donation as a tax deduction. Remember to get a receipt for tax-filing purposes.

3. Save money with maintenance. As you clean your home, take note of any areas that need maintenance or repair. Vacuum dust from coils on the back of your refrigerator and/or stove. Clean out or replace the dryer vent. Replace furnace and air conditioner filters. Drain the hot water heater. Call in pros to service your furnace. This maintenance can help appliances run more efficiently, saving money on utility bills. It also may extend the life of your appliances. If you can put off replacing an appliance for a year, you might be able to save enough to pay for its replacement outright – and avoid going into debt on the purchase.

4. Know what you have. As you swap winter clothes for your summer wardrobe, take a good look and decide if you really need four pairs of nearly identical black pants or six blue shirts. Take note of what you own so you do not purchase duplicates. Do the same as you sort through linen closets and the pantry. Set a goal of using up items before you are tempted to buy more. Make a weekly menu to help yourself eat from the pantry or freezer. As you do so, keep note of your financial savings, and use them to send an extra payment to a credit card or savings account.

5. Avoid paying for storage. By clearing out room in your home, you might avoid the common temptation of needing to rent a storage unit to keep possessions you are not using. Millions of people rent storage spaces, at an average cost of about $100 per month. Wouldn't you rather use $100 a month to get out of debt or save for your future? If you save the $100 per month in an IRA or 401(k) account, you will have $30,000 in 25 years – even before interest is added in. That is a far better investment than a storage unit full of boxes and unwanted furniture.

6. Get paperwork organized. While you are cleaning, organize an area to keep all paper bills and financial information. Sign up for electronic statements and automatic payments where you can. Also add a recurring note to your calendar to pay bills in a timely manner. This will help guard against the common problem of paying late because of misplacing a bill.

It can feel like drudgery to clean out your home, but the motivation of a financial incentive is the perfect inspiration to take action this month and dust out the corners of your home – and your wallet.

Andrew Housser is a co-founder and CEO of Bills.com, a free one-stop online portal where consumers can educate themselves about personal finance issues and compare financial products and services. He also is co-CEO of Freedom Financial Network, LLC providing comprehensive consumer credit advocacy and debt relief services. Housser holds a Master of Business Administration degree from Stanford University and Bachelor of Arts degree from Dartmouth College.