Birds singing, bees buzzing, and slightly longer days are all signs that winter has finally turned to spring. And with spring often comes the urge to deep clean your home, giving you the feeling of a fresh start. But spring cleaning doesn’t have to apply only to your home—your financial habits could probably use a little sprucing up too. Keeping your finances in good order improves your financial health and well-being.
Here are six ways to put a polish on your finances this spring:
- Review your budget. Are you spending within your limits? Or are you overspending? Can you eliminate expenses like unused gym memberships or extra streaming services? Can you eat in more often to save money? Staying on a budget means you’ll reach your financial goals faster.
- Itemize your debt. Sometimes it’s hard to know how much debt you have when you have multiple credit cards, student loans, or a mortgage. Take stock of all your debt, listing balances, interest rates, and terms. Put a plan in place (think: debt repayment strategies, consolidate debt, etc.) to tackle your debt, so you can pay off your debt faster and save money on interest.
- Inspect your credit report. Request a free credit report from one of the three major credit reporting agencies to ensure your credit information is correct. If you encounter something unusual or notice an unfamiliar account, contact the credit bureau immediately and report it.
- Save a little extra for retirement. Are you saving for retirement? Could you save a little more? Upping the amount you put toward your retirement every month can go a long way toward increasing your retirement savings. Look at what it would take to bump up the percentage of your contribution—even by a small amount—and give your future self a gift.
- Build your emergency savings. Make sure your plan for building your emergency savings is intact. If you haven’t already started, create an emergency savings account to prepare you for the unexpected. Sudden job losses, high medical bills, or costly repair bills can drag down your finances and create a lot of stress.
- Track your financial goals. Are the goals you set previously still what you want? Look at your achievements so far and give yourself a high five if you’re on track. Make any course corrections if you’ve gotten off track. And if your end destination has changed, establish a new set of goals that match where you want to go.
Give your finances a fresh start every spring. Make it a habit of revisiting important financial topics several times yearly. If you need advice on ensuring you’re on track to meeting your financial goals, we’re here to help. We will review your objectives, financial plan, and overall financial health to ensure you feel as light as the spring air regarding your finances.