10 tips for financial spring cleaning

Freshen up your finances

As springtime is nearing, now is the perfect time to tackle ambitious projects like organizing closets and pantries. But spring cleaning can go beyond living spaces. Your finances can use some attention, too. Cleaning up your finances involves taking the time to review, organize, and refresh your financial situation. Here are some steps you can take to give your finances a thorough spring cleaning and help your financial life bloom:

1. Review your budget.

Evaluate your current spending plan and adjust if necessary. Identify areas where you can cut expenses or reallocate funds to align with your financial goals.

2. Check your credit report.

Obtain a free copy of your credit report from each of the major credit bureaus. Review the reports for any inaccuracies and dispute any errors you find. One website example to obtain this is AnnualCreditReport.com.

3. Evaluate and negotiate bills.

Review your monthly bills for services such as cable, internet, and insurance. Consider negotiating with providers for better rates or explore alternatives.

4. Update financial goals.

Assess your short-term and long-term financial goals. Adjust your goals based on changes in your life circumstances or priorities.

5. Organize important documents.

Gather and organize financial documents, such as tax returns, bank statements, and investment account statements. Shred or securely dispose of any unnecessary paperwork with sensitive information.

6. Check your emergency fund.

Ensure your emergency fund is still sufficient to cover three to six months’ worth of living expenses. If needed, make adjustments to increase your emergency savings.

7. Consolidate accounts.

If you have multiple accounts or financial products, consider consolidating or closing them for easier management. Before closing a credit card, it’s wise to consider the potential impact on your credit score.

8. Set up automatic savings.

Automate your savings by setting up automatic transfers to your savings or investment accounts. Take advantage of employer-sponsored retirement accounts and contribute consistently.

9. Review subscriptions and memberships.

Evaluate your subscriptions and memberships to streaming services, magazines, or gyms. Cancel or adjust services that you no longer use or need.

10. Plan for major expenses.

Anticipate major expenses, such as home repairs or upcoming vacations, and budget accordingly.

This spring, let your financial life bloom. Spring cleaning is not just for the home, but also your finances. Direct your deep-cleaning energy toward your financial habits to make room for greater financial health this year. By taking these steps, you can declutter and refresh your financial situation and set the stage for continued financial well-being throughout the year.