Spring is here and we are ready for it after a long Winter. Now is the time for renewal, freshness, and a bit of Spring cleaning.
As you clean your surroundings, it’s also important to clean up your finances and get your money life together.
Follow these tips and learn how to spring clean your finances and organize your financial life today.
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Spring Cleaning Financial Tip #1: Revisit Your Budget
Your budget plays a critical role in your spring cleaning financial activities because it is the primary tool to track your money.
If you have not been using a budget, Spring is the perfect time to start a budget and use it to monitor your income and expenses.
If you already have a budget, take some time and look at how you managed your money in the Winter.
Were you able to clear your Christmas spending debt, did you file your taxes on time or are you getting ready to file?
What was the major item of expenditure over the past three months?
Look at these factors from your budget and make notes on how you can avoid any strains for your finances for the rest of the year.
At the same time, think about the rest of the year – right after Spring is Summer.
Are you travelling this Summer, do you need to start booking tickets and securing accommodations?
Start mapping out the plans you have for the upcoming months and make a note of them in your budget.
This will give you the added pleasure of ensuring that you are meeting your obligations while also planning for fun activities that will enrich your life and not leave you in the red financially.
Your budget will be the key and the start to applying these tips on how to spring clean your finances this year.
Spring Cleaning Financial Tip #2: Make a Plan for Your Tax Refund
It’s Spring time, that means that you will be filing or have already filed for your taxes.
Now if you are lucky to receive a tax refund, start brainstorming on how you will be using this money.
Think about your current needs and goals and use those ideas to determine how you will make your refund work for you.
If you need to remodel or redecorate your home, that could be a good use of your refund. Remodelling helps to raise the value of your home and is a good investment.
Speaking of investment, would you prefer to invest that money in stocks, or another asset class?
Map out what that looks like and meet with a financial advisor to ensure that you are making the right investment choice for you and your family.
Or maybe you want to use that money to upgrade your skills and do a course or go back to school?
These are all ways in which you can use your tax refund. Take the time and think carefully about how you are going to make this money work for you.
Spring Cleaning Financial Tip #3: Look At Your Credit Report
Spring is also a great time to assess your credit worthiness and this is done by looking at your credit situation.
You can check your credit score using creditkarma.com and look at how you are trending.
You can also request your free credit report to go through it in detail to look for any errors or inconsistencies.
If your credit score needs improvement, spend some time deciding on how you will do this and make the sacrifices where necessary.
Alternatively, if you have excellent credit, continue to do what works and keep track of your financial habits so you can continue on that path.
Spring Cleaning Financial Tip #4: Physically Organize Your Financial Documents
While you are making sense of your finances – you need to also be practical in how you manage your financial documents. This is the way to ensure that you are on track to spring clean your finances.
Buy a secure binder and collect all of your bank statements, mortgage statements, tax documents, and credit card statements and file them in this binder to keep track of your documents.
When you are organized with your money, it makes it easy for you to access and examine your finances at any time which can lead to reduced stress and anxiety around your money.
Another trick to keeping your money organized is by tracking your finances in a planner – if you are a person who prefers to put pen to paper.
You can check out this financial planner and use it to keep track of your money.
Also, if you have a budget in excel, try to finalize it at the end of the month, this will give you closure each month. This helps you to know where you stand at the beginning of the next month.
Spring Cleaning Financial Tip #5: Assess Your Current Bank and Investment Accounts
If you use online banking, login to your bank accounts and look at the accounts that you have.
Are they offering you the best interest rates?
Are you comfortable with the fees you are paying?
Are you receiving good customer service and can you trust your financial advisor?
Likewise, look at your investment accounts.
Is the management fee worth the return you are receiving?
Do you know your rate of return and are these investment accounts serving your current needs?
Spend some time looking through your accounts, try to understand if they are working for you, and figure out if you need to make any changes.
Spring Cleaning Financial Tip #6: Look At Your Life/Term Insurance Policies
As you look at your bank accounts, you also need to look at your insurance situation.
For starters, if you do not have insurance, start looking around for insurance especially if you have dependents and get insured.
As you get set up for insurance, find a premium that you can afford and then make those payments every month to protect yourself and your family.
If you already have life insurance, think about your situation carefully.
Has there been any changes in your life? Did you get married or have another child etc. and then adjust your life insurance to include these changes.
If you changed jobs, ensure that you are enrolled in some life insurance or look at any changes you need to make.
Perhaps your insurance with your old employer has lapsed and you need another insurance policy to cover that.
If you’ve rolled over your old insurance, ensure that you are getting the right coverage and the policy/premiums have not changed.
Spring is the perfect time to look at your insurance situation to ensure that everything is covered and you are secure for the rest of the year.
Spring Cleaning Financial Tip #7: Revisit Your Financial Goals for the Year
You may have set financial goals at the beginning of the year – when everyone was making new year’s resolutions – Spring is the time to revisit them.
Perhaps you forgot about those goals or you misplaced them – search for those goals and if you need to make new goals, start thinking about what those new goals are and how you are going to accomplish them.
Spend some time thinking about your financial future – when do you want to retire, your kids education, if you want to buy a home or buy an investment property.
Think about the dreams you have as well – do you wish to travel more often or do you want to start a business?
Write down the goals and look at your current financial situation.
This exercise will help you to take bold action toward achieving those financial goals.
Your Spring Personal Finance Checklist
This Spring personal finance checklist will give you the added boost you need to spring clean your finances this year and get you on track with reaching your financial goals.
As Spring comes with its warmer weather and singing birds, you will also rest assured that your financial life will be ready for renewal and success.
If you need support with reaching your financial goals, you can check out our resources here and get help with your money.
In the comments, let me know – which of these financial activities will you be doing this Spring?
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