Today marks the first day of spring and when you’re cleaning out your closet, I recommend everyone takes some time to start simplifying your finances. Reducing financial clutter – whether that’s unwanted fees or extra paperwork – can save you time and money. And when the warm weather beckons, who doesn’t want to have more free time?

1. Reorganize your wallet and reconsider your credit card options, and you could never pay a late fee again. Even after making your financial New Year resolutions, do you still miss payment deadlines every once in a while? If so, it’s time to re-evaluate the credit cards in your wallet and look for one that will help you say goodbye to late fees. Citi Simplicity has NO late fees and NO penalty rate – EVER; you can learn more at citi.com/simplicity. When you consider late fees start at $15 and can go up to $35, these fees can really add up.

2. Reduce your clutter and take the work out of managing your bills. There are simple, easy ways that you can stay organized, reduce paper clutter, and save time (and not to mention trees!). Online tools like from your bank or sites like Mint.com and Manilla can help you keep all of your finances organized and in one place. Many banks also offer the ability to manage your accounts via your tablet and deposit a check with your mobile phone.

3. Use rewards to your advantage. According to the 2011 Colloquy Loyalty Census, more than $16 billion in reward points go unused each year. So, it’s extremely important to review your financial statements and look over your credit card rewards to map out a strategy to use them this year! There’s no shortage of great options to use your reward points these days, from travel to electronics. If you are a Citi ThankYou Rewards member you can even use your ThankYou Points for concert tickets on Livenation.com and if you have a Citi credit card that earns ThankYou Points, you can use your points for purchases at Amazon.com.

4. Sell valuables that are collecting dust. Ever wonder what to do with electronics that you never touch anymore? Or old jewelry that’s no longer your style and has no sentimental value? With gold at record levels, it’s a good time to cash out and sell. And, what about those gift cards that you have no intention of ever using? You can sell those too and get up to 90% of the full value, depending on the popularity of the merchant on designated gift cards sites. Or you can just sell them on eBay or Craigslist and avoid the middleman altogether!

5. Unlock your safe deposit box for unredeemed bonds. Did you know that we’re sitting on $16 billion in unredeemed bonds, according to the U.S. Treasury Department? Bonds that have matured are no longer earning interest. To see what they’re worth – and to redeem them – go to www.treasurydirect.gov.

6. Take a look through your file cabinets! With tax day quickly approaching, and all the relevant forms coming in, we all get bogged down with paperwork. And being disorganized is not a good thing! Go through your file cabinets and get rid of what you can – statement fillers, receipts for everyday purchases you don’t anticipate returning, bank deposit slips, ATM receipts once you’ve checked against your monthly statements, old cancelled checks and registers (unless you need them for tax purposes). Remember to keep the more important documents in a safe place including tax records, which should be kept for 3-7 years, and of course, things like birth/death certificates, marriage/divorce papers, and social security cards that you need to keep forever.

7. Use a price protection program that helps you save all year long. Many of us spend a lot of our own precious time researching the best available prices before we make a purchase. So, now is a great time to evaluate and use tools that do price comparison shopping for you, even after you purchase an item. Citi Price Rewind searches for a lower price when you buy and register an eligible item with your Citi credit card. If Citi finds your item at least $25 lower than what you paid within 30 days of purchase, you can get the difference in price back, up to $250.

TRACK YOUR PAYMENTS (Electronic Bill Payment and E-Bills): You can’t begin to manage your finances until you know what money is coming in the door and what’s going out. Your bank can be a great hub for financial management – particularly bill payments. Instead of going from website to website to pay bills, or mailing checks, you can pay any bill from your online banking account and maintain complete control over your payments. You can schedule payments prior to leaving on vacation or schedule repeating payments for bills that you pay each month. Many banks even let you receive bills. These electronic bills – known as e-bills – are delivered directly to your account – so you can click and pay without the paper clutter. Your bill summary information is then typically stored online for 24 months.

REMIND YOURSELF AND SET-UP ALERTS (Digital Calendar): It may be hard to keep track of all your bills and when they’re due, but pay them late and you’re up against penalties, as well as possible credit score consequences. In fact, according to FICO Score, 35 percent of your credit score is based on on-time payment history, which is the largest single component of your credit score. Digital calendars, such as Google Calendar, are a great way to keep those payment deadlines in order and many will send you automatic reminders of important details, like bill due dates, on certain days. Many financial institutions and billers also offer alert notifications if you receive your bill from them electronically.

NO MORE CASH, CHECKS OR I-O-Us (Digital Social Payments): When it comes to paying other people, we are still using last century’s technology – cash and checks. However, recent digital payment technologies are redefining how we pay each other. One such game-changer is Popmoney, a digital social person-to-person payment service that allows anyone to send or receive money from their existing bank account using an email address or mobile phone number. Popmoney is available at more than 1,800 participating financial institutions, such as Citibank, PNC Bank, and Fifth Third Bank, or at Popmoney.com and can be used for everything from paying a landlord for rent to sending your favorite college student money.

ORGANIZE MEMBERSHIP AND REWARDS PROGRAMS (Reward Card Apps): Is your wallet and keychain jammed with membership and rewards cards — for grocery stores, drug stores, clothing stores and more? Eliminate the overload and go with a better (and more stylish) alternative: create scannable versions. There are several reliable (and FREE) apps, such as CardStar or Key Ring, available that can help to keep what should be a bonus from becoming a burden.

SAVE, FILE AND KEEP ELECTRONIC RECEIPT RECORDS (Receipt Scanners): Saving all your receipts to complete the year’s taxes is filing 101, but keeping track of every slip of paper collected over time can lead to a mess of overflowing boxes and files. Keep everything organized and cataloged electronically with an easy to use receipt scanner. While they can range dramatically in price and portability, the ease of having all your receipts logged and easily accessible will help to avoid a headache in the future.

Regardless of what you owe, zeroing out your housing costs is a smart money move. This story will show you the best ways to do it.
By Vera Gibbons, Real Simple magazine

If you’re in the market for, say, a four-bedroom Colonial just about anywhere in America, you’re in luck. Home buyers haven’t had it this good in years: Sales prices have plummeted as much as 50 percent since 2006, and interest rates are at historic lows (at press time, about 3.5 percent for 30-year fixed loans). As a result, many people can buy a home today without taking on a mountain of debt.

Experts agree that it pays to reduce debt in all areas of your life—and, in an ideal world, to eliminate it completely. So if you’re financially secure (meaning you’re free of high-interest credit-card debt, you’re investing in your retirement, and you have an emergency savings account that will cover 6 to 12 months’ worth of vital living expenses), paying off your mortgage makes sense—yes, even though interest payments are tax-deductible. Meeting this criterion and eliminating your debt completely may be unrealistic for you, but reducing your debt isn’t. Here’s how to get it done.

5 Smart Strategies to Reduce or Eliminate Your Debt

1. Refinance to a lower interest rate. Despite rock-bottom rates, millions of creditworthy Americans have not yet refinanced. And that’s a shame: Borrowers who refinanced during the second quarter of 2012 lowered their rate by an average of 1.5 percent. For a $200,000 home loan, that translates to savings of about $2,900 in interest payments over the next 12 months, according to Freddie Mac. (To calculate how much you could save, use the refinance calculator at Money.CNN.com, which, like Real Simple, is owned by Time Inc.)

If you plan on staying in your home for at least three more years and your mortgage is at least $100,000, with an interest rate of 4.75 percent or higher, ask your current loan servicer or lender for its best refinancing rate. Then compare that with rates at banks that you already have accounts with. Or you can opt to work with an independent mortgage broker to find the lowest rate, says Keith Gumbinger, the vice president of HSH.com, a mortgage-information site. If you can reduce your current interest rate by .75 to 1 percent, go ahead and refinance.

To help the process go smoothly, gather the following paperwork: proof of income (two recent pay stubs), copies of asset information, your tax returns for the previous two years, and proof of investments and other income. Additionally, be prepared to offer explanations for any recent income irregularities, credit inquiries, or job gaps. “Lenders question these situations because they could be an indication that you can’t afford your current loan,” says Gumbinger.

2. Refinance to shorten your loan’s time frame. It’s becoming increasingly popular for home owners—even those on tight budgets—to refinance their 30-year fixed-rate mortgages to 20- or even 15-year ones. Today’s low rates allow you to do this while keeping your monthly payment fairly close to the current amount, says Erin Lantz, the director of Zillow’s Mortgage Marketplace, a real estate–valuation website. Say you’ve been making payments on a 30-year, 6 percent fixed-rate mortgage of $200,000 for five years. If you refinance to a 15-year, 2.87 percent fixed-rate loan (typical at press time), for example, your payments will increase by less than $80 a month. Yet you would pay off the loan 10 years earlier, build equity faster, and save an astonishing $130,477 in interest.

3. Make a lump-sum payment. Did you receive a tax refund? An inheritance? Or come across a small stash of cash? Consider applying some or all of this money to your principal balance. “This is one of the best strategies you can employ, because you’re not required to make a higher monthly payment,” says Gumbinger. “And you didn’t count on having the money in the first place, so you won’t miss it.” Making a single $5,000 payment on, say, a 30-year, 4.5 percent fixed-rate mortgage of $225,000 would save a home owner more than $13,000 in interest and reduce her repayment term by 15 months.

Take note: Call your lender to verify that your mortgage doesn’t have a prepayment penalty. If it does, you could be hit with a fee—usually 1 percent of the loan amount.

4. Switch to biweekly payments. Simply by making half your monthly payment every two weeks, you will chop off almost six years off a 30-year mortgage, says Greg McBride, a senior financial analyst at Bankrate.com, a personal-finance website. Not to mention that you’ll save tens of thousands of dollars over the life of the loan. All you have to do is contact your lender to change your payment schedule (be prepared to pay a onetime setup fee of $250 or more). Remember that twice a year, you’ll be making three payments a month instead of two, so be sure that there are enough funds in your bank account.

5. Round up your payment. Every little bit—even if it’s just $20 or $50 a month—that you pay toward your principal is less that you’ll ultimately pay in interest. For instance, maybe you have a monthly mortgage payment of $954.83. If you round up the payment to $1,000 by putting in an extra $45.17, you’ll pay off your debt two years and five months early. (Use the round-up repayment calculator at HSH.com to calculate your savings.) “This is a great option for anybody with a little additional cash, especially someone who has already refinanced or who doesn’t qualify for refinancing,” says Gumbinger.

With recent changes to tax and Social Security withholdings, many people are wondering how they can make their take home pay take them further in 2013.

Here are two strategies you might consider to help you minimize costs and boosting savings in both the short- and long-term.

First, don’t overlook ways to save and stretch your budget.
1. Everyone knows that post-holiday sales net good savings. But what you might not know is that right now is one of the best times of the year to buy electronics, winter coats and fitness equipment. So if your resolution was to get in shape, now is the time to purchase exercise equipment like a treadmill at a significant savings. If you’re looking to upgrade your Super Bowl viewing party, look into reduced prices for flat-screen TVs. And make sure you’re using tools that do price comparison shopping, even after the purchase. For instance, Citi Price Rewind searches for a lower price for you when you buy and register an item with your Citi credit card. If Citi finds your item at least $25 lower than what you paid within 30 days of purchase, you can get the difference in price back up to $250.
2. If you’re someone who needs to take unused vacation before they lose it, this month is the ‘shoulder season’ which means discounted rates on off-peak for many vacation destinations. Travel now before prices rise in early February ahead of peak times like school holiday break weeks and Easter. January means deals to U.S. ski destinations as well as flights to Europe and more.
3. Look for credit cards that help you minimize fees and interest. The Citi Simplicity credit card promises to never charge you a late fee or penalty rate, and offers no interest for your first 18 months. When you consider that late fees can cost you up to $35 – this savings really adds up and gives you peace of mind. In comparison, with an average cash back card earning 1% back, with a late fee of up to $35, you would need to spend $3,500 to offset the cost of every late fee.
4. Max out your 401k. If you have a qualified retirement plan at work, contribute the maximum amount to that 401k. You’ll reduce your taxable wages by the amount you put in. This year, you can save up to $17,500 in a 401k — a 3% increase from 2012. Those age 50 and over can add an extra “catch up” contribution of $5,500 for a total of $23,000 in 2013.

Second, don’t leave your hard-earned money on the table.
1. Don’t wait until April to start your taxes. The beginning of the year is a great time to consult with your tax professional about ways to minimize your liability, which includes taking advantage of all the credits and deductions you’re entitled to. You may also want to change the number of allowances you claim on your W-4. Chances are, you need to: more than 75% of us got a refund last year, and the average refund was about $3000. This tells us we’re having too much withheld! Taking extra allowances pushes down your withholding and pushes up your take-home pay.
2. With mortgage rates at record lows, look into refinancing. Millions of credit worthy Americans have yet to refinance, yet should. After all, one study showed that they are overpaying their mortgages by an average of over $400 a month.
3. You’ve earned your rewards, so use them! According to the 2011 Colloquy Loyalty Census, more than $16 billion in reward points go unused each year. Continually evaluate the credit cards in your wallet and make sure you are taking advantage of the reward and loyalty programs you’re enrolled in and how they can work hard for you – from free auto rental insurance, to complimentary companion airline tickets, to upgrades and status at hotels.

Just a few weeks into the New Year, here’s my take on what’s in and what’s out — financially — in 2013:

In: Credit cards
Out: Cash

Granted, some Americans are beginning to use cash instead of credit, but most of us are still relying on plastic. Balances and delinquency rates are up (90 days past due), and this trend is expected to continue this year, according to a forecast by credit reporting agency TransUnion. Why? In part because credit has loosened, and risky borrowers are getting cards.

In: Contract/freelance work
Out: Full-time employment

According to some labor experts, the number of U.S. workers who are “contingent” (meaning they work as freelancers/contractors, take on projects, etc.) is currently at about 30 percent, and this number is expected to rise. Companies have grown accustomed to the flexibility, and you’re paying the price: no job security, no benefits, nah dah.

In: Credit unions
Out: Big banks

Credit unions have been growing in popularity in part because of consumers’ growing disillusionment with big banks. We’re annoyed with all the fees (especially the monthly maintenance fees), and the nickel-and-diming. Furthermore, we don’t like or trust big banks, and that has us looking for alternatives such as credit unions, which offer not only higher rates on deposits and lower rates on loans, but a kinder, gentler experience overall.

In: Homeownership
Out: Renting

Given that homes are more affordable than ever and mortgage rates are still at record lows, and given that rents keep rising (Zillow’s data shows nationally rents are up 4.5 percent this past year) it makes more financial sense to buy in most markets today than it does to rent, according to Zillow’s Breakeven Horizon analysis. In some markets — such as Miami, Tampa, Orlando, Phoenix, Las Vegas and others — you can break even in under two years.

One caveat: Remember, all real estate is local, and in major markets such as NYC and San Francisco, renting continues to make more sense than buying. Check out Zillow’s analysis to see how your market fares in the rent vs. buy debate.

In: Buying local
Out: ‘Made in China’

Granted, most of us still shop at the big-box chains, but some local businesses — whether selling homegrown food, gifts or specialty items — have seen a surge in interest in keeping business dollars at home/putting the money back into the local economy and going for that quality, personalized shopping experience. The “buy local” campaigns have helped drive this awareness/interest.