Spring Clean Your Finances

Just like how clutter and junk can accumulate in your home, it can build up in your finances as well. Do your finances need a good wipe down this season? Just like decluttering your home, tidying up your financial life can bring clarity, organization, and a renewed sense of control.

This season, do a spring-cleaning of your finances and set yourself up for a confident and successful financially healthy year ahead!

Dust Off Your Budget

Regardless of when you have made your last budget, it likely has collected some dust since the last time you looked at it. Grab the feather duster and give your budget a thorough review.

• Your income will change over time, so make sure to revisit your budget regularly, perhaps quarterly.
• The budget you choose doesn’t have to last forever. If you find that your initial strategy isn’t working, try a different one.
• Look for areas where you can trim expenses, allocate funds to align with your current priorities, or automate payments.
• By optimizing your budget, you can maximize your savings potential and reduce unnecessary spending.

Freshen Up Your Financial Documents and Passwords

Spring cleaning isn’t just about freshening up physical spaces, it’s also about organizing your digital and paper clutter. Take some time to sort through your financial documents including:

• Bank statements
• Tax returns
• Investment accounts
• Insurance policies

Shred or securely dispose of any outdated or irrelevant paperwork and create a system to keep the important documents easily accessible and organized. Consider switching to online statements and bill pay to help keep things cleaned up.

It’s also a good idea to organize your passwords as well. Mobile and digital banking makes access easy from anywhere but takes attention to security. Reset those passwords and keep them organized in a safe place.

Tidy Up Your Credit

In addition to taking a wet wipe to your actual credit cards, consider if each card still deserves a spot in your wallet. Your needs change over time, and your credit cards should keep up with them. There are several reasons why you might want to switch:

• Your spending habits have changed.
• You opened a credit card with a 0% interest promotion to make a major purchase or pay down debt, but you’ve paid off the balance and the no-interest period is over. 
• Another credit card is offering a compelling welcome bonus.
• Your travel habits have changed, which affects the type of rewards card you’ll apply for.

You have a few options if you’re ready to make the change but think twice before reaching for the scissors.

• If you’re paying an annual fee on an old card you don’t use, call the credit card company to see whether there’s a no-fee card they can transfer your account to.
• This allows you to keep your account open at no cost. If that’s not an option, canceling the card to avoid the annual fee could be a money-saving move — and might be worth any temporary ding to your credit scores.

Deep Clean Your Accounts

If you’ve switched from one financial institution to another, you may have dormant accounts that are still open and charging you fees or even holding onto money you’ve forgotten about. Or maybe you’ve started a new job and haven’t transferred the 401K funds to your current one. Get a handle on your accounts and wipe out the ones you don’t need any longer—a minimal approach to your finances will make it easier to:

• Manage Your Accounts
• Give Your Savings a Greater Chance at Growth
• Help You Avoid Unknown Fees

Toss Out Old Subscriptions

It’s easy to lose track of your subscriptions, including their costs, especially if they are automatically deducted from your account. List all recurring payments, including:

• Streaming Services
• Gym Memberships
• Mobile Apps
• Food Subscriptions
• Recurring Amazon Purchases

Once you have a comprehensive list, evaluate which subscriptions you actually use and value. Cancel those you don’t need or use anymore, or consider switching to a lower cost plan, if necessary.

Declutter Your Debt

Do you feel like your debt is all over the place? If you have multiple loans and credit cards with different interest and payment rates, it might be time to consider debt consolidation. Once your debts are combined into a few, or just one single place, it may be easier to keep track of repayment progress and monthly charges.

Don’t Let Your Tax Return Give You Spring Fever

Don’t let the excitement of your tax return overshadow your excitement to increase your financial wellness. Instead, create a spending plan for the funds that could include:

• Paying Off Debt
  • Pay off any high-interest debt with your tax return is one of the best investments you can do with your tax return
  • Chances are your credit card bill is bigger than your tax refund. If that’s the case, you might want to use the ‘snowball method,’ which encourages paying off a bill with the lowest balance first – if you want to feel a greater sense of progress
• Starting or Contributing to a Retirement Plan
  • Whether you have a Roth or traditional IRA, or a 401K, use the extra funds to augment your retirement account for when you’re no longer working.
  • You can consider starting an IRA for your children to invest in their retirement as well. With the power of compounded interest, contributing to an IRA from an early age can help secure their golden years.
• Start a College Fund
  • Opening a college fund for your kids can help save them a significant amount of money in the future as well.
• Save for a Particularly Rainy Day
  • The unexpected can happen—whether it’s a broken appliance, new tires for your car, or a flooded basement, emergency funds are essential.
  • Consider adding your tax refund to help make sure your emergency fund covers 3-6 months of required living expenses.

Plant the Seeds to Reach Your Financial Goals

Your financial wellness is like a garden—you can plant the seeds to allow your financial goals to blossom. Taking these small steps keep the seeds of your financial wellness growing strong over time:

• Organize Your Income and Expenses
  • When was the last time you took a good look at your monthly finances? Taking inventory of your income and expenses can help you cut wasteful spending, just like how going through your closet can help you decide what to toss and what to keep.

• Automate Your Savings
  • Make your savings a priority by automating contributions from your checking account into your savings and/or investment accounts each month

• Revisit Your Goals
  • Sit down and do some deep thinking with yourself, a partner, family member, or close friend to make sure that your money goals still align with your top priorities of the year. If they remain the same, you can take the time reflect on the progress you’ve made so far this year.

• Stay Flexible
  • Remember to stay flexible with your finances. Life is unpredictable and unexpected expenses can arise at any time. Be prepared to adjust your budget and savings plans as needed and make changes as your financial situation evolves.

Don’t Limit Yourself to a Spring Cleaning

Don’t limit yourself to a once a year ‘cleaning’ of your finances—do a spring, summer, fall, and winter cleaning as well. You can even set up a monthly reoccurring date with yourself to organize your finances and ensure that you’re on top of where your paycheck is going. Taking the time to consider whether you’re getting the most out of your finances can go a long way!