Spring Cleaning Your Finances
03/20/2025
Your financial plans and accounts often need to be tweaked from time to time and Spring is one of the best times to accomplish these tasks. Why? You have probably just finished your taxes so most of the information you need will be readily available. Also, making changes earlier that have tax implications will yield a greater result if done in the Spring. Plus, many of these moves are much easier than edging the flower bed!
Where is the first place to start with your financial spring cleaning?
Revisit your financial resolutions. It's important to check if you're making progress on your New Year's resolutions related to spending, saving, borrowing, and earning. If you didn’t set goals for these areas, now would be a good time to establish them. This will help you stay on track and make any necessary adjustments to achieve your financial goals. An early review can often lead to a better overall outcome on achieving your resolutions.
Are there any areas with credit and credit scores to review?
Check your credit report for errors as a regular review. This helps ensure your score stays high. If there is a problem, make sure to get it corrected and look to see if there are any fraudulent accounts opened or credit inquiries you didn’t make. Another good move is to request a credit line increase. This can make it easier to manage your finances and improve your credit score because you will lower your credit utilization ratio.
How might we need to clean up our spending or expenses?
Check and manage your recurring expenses to identify any unnecessary costs. You might find out that you are still paying for that streaming service or gym membership that you don’t really use. Also, price check your fixed expenses such as auto, home, and renters’ insurance. An annual price check might yield a lower cost and that is always going to be helpful for your overall financial situation.
What are the “to do” items for retirement or investment accounts?
Simplify your finances by consolidating multiple retirement accounts. Rebalance your investment portfolios and ensure they are aligned with your financial goals. Increase your contribution amount if you are not at the maximum because the goal is always 10% or more. Finally, if you are within 5 – 7 years of when you want to retire, start working with a financial advisor to see when you can retire and each year, update the plan and see if you are still on track.