Tips to Spring Clean Your Finances
Have You Given Your Financials a Deep Clean Lately?
Spring is a season of growth and renewal in many areas of our lives, which is why so many people engage in spring cleaning in and around their homes. For the same reason, this season is the perfect opportunity to pause and assess where you stand financially, dust off accounts you’ve been ignoring, and refresh your goals so that you can look forward to the rest of the year with a clean slate and clarity in your strategy.
This spring, as you refresh your wardrobe and clean out your garage, consider setting aside time to spring clean your finances, too. Below, you’ll find tips on how to get started – and how to maintain forward momentum through the rest of the year.
Throw Out Bad Money Habits
Out with the old and in with the new, right? Springtime is the perfect time to get rid of the things that are no longer serving your greater good, including poor money habits. Take this time to sit down and reflect on how you’re managing your money and what bad habits you’re practicing that you may want to leave behind. A great place to start is to get a better handle on your spending and determine whether there are places to cut unnecessary expenses in favor of bulking up your savings instead.
Don’t feel like you have to revolutionize your entire relationship with money in one season, however. That sort of mindset can make a financial spring-cleaning feel overwhelming and leave you with a greater chance of falling back into bad habits. Rather, keep your assessment high-level and pick one bad money habit to replace.
Dust Off Your Budget
There’s a reason so many people skip the foundational personal finance step of creating a budget – they can be difficult to stick to and it takes discipline, determination, and organization to do so. Use your financial spring cleaning as an opportunity to spruce up your existing budget or create a new one that is both realistic and serves your goals.
Following a budget can make achieving your smaller financial goals a reality and can help you ensure that you’re on the right track to tackling those larger, more intimidating financial goals in the process. It also helps relieve you from unnecessary stress that comes from mismanaged finances.
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Discard Your Debt
Just like the old clothes that no longer fit you but are still taking up space in your closet, debt can take up a lot of prime real estate in your life, if you let it. As you spring clean your finances, take the time to set up a debt payment plan that can help you get a better grip on your debt management for the rest of the year.
Even if you can’t pay off all your debt this spring – or even this year – creating a written plan that delineates what you’re paying and when you’re paying it will increase the chances that you’ll follow through and toss out your debt for good.
Dispense with Outstanding Bills
Your spring financial refresh is also the perfect time to tackle any outstanding bills or missing payments you may have stacking up. Life is busy and it’s easy to miss a payment here and there, especially if you have not yet set up automatic payments. As you establish a budget and a debt payment plan, be sure to incorporate late bills into your financial plans, as well.
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If you have outstanding bills that feel overwhelming, think about taking advantage of the warmer weather by throwing a (COVID-safe) yard sale or going on a spending fast so that you can allocate some extra funds to help you tackle these bills once and for all.
Planning Ahead
Just like a gardener who’s preparing and planting seeds for the summer, it’s important to lay the groundwork and do the maintenance to ensure that your finances are in order. Whether you hope to finally leave your debt in your past, or you’re looking forward to retirement planning, the spring season is the perfect opportunity for you to get your finances cleaned up and put yourself on track toward greater financial security.
At Andersen, helping you achieve a strong financial future is crucial to everything we do. If you’d like guidance with strengthening your financial security or establishing a comprehensive financial plan, please contact us today!