Spring Cleaning for Your Finances

Spring is the perfect time to refresh and reset different areas of life, and your finances should be no exception. Just as you declutter your home, organizing and reassessing your financial situation can help you gain better control over your money and set yourself up for success. Here are some ideas on how to do some “spring cleaning” for your financial life.

Tidy Up Your Budget & Spending Habits

The first step to tidying up your finances is to take a close look at your budget and spending habits. Review your income and expenses over the past few months to identify any patterns. Are you overspending in certain categories? Are there subscriptions or memberships you no longer use? Cutting back on unnecessary expenses and reallocating funds toward savings or debt repayment can help improve your financial health. If you don’t already have a budget, now is the time to create one that aligns with your financial goals. There are lots of apps available, such as YNAB, Goodbudget and EveryDollar, to make budgeting convenient.

Organize & Declutter Financial Documents

Just as clutter in your home can cause stress, disorganized financial documents can lead to missed payments and unnecessary fees. Start by sorting through old paperwork and shredding documents you no longer need. Consider switching to paperless statements and setting up a digital filing system for bills, tax documents, and investment statements. Keeping your financial records organized makes it easier to access important information when needed and reduces the risk of losing track of payments.

Assess & Improve Your Credit Score

Your credit score plays a crucial role in your financial wellbeing, impacting everything from loan approvals to interest rates. Take some time to review your credit report for any errors or inaccuracies and dispute them if necessary. Paying down high interest debt and setting up automatic payments for bills can help improve your credit score over time. If your score is lower than you’d like, consider strategies such as keeping your credit utilization low and avoiding unnecessary hard inquiries on your report. You can receive a free annual credit report for each of the major credit agencies through annualcreditreport.com

Refresh Your Savings & Investment Strategy

Spring is a great time to freshen up your savings and investment plans. Evaluate your emergency fund and determine if you need to start one or increase the amount you’ve set aside for unplanned expenses. Review your retirement accounts and investment portfolios to ensure they align with your risk tolerance and long-term goals. If you have multiple retirement accounts from previous employers, consider consolidating them to simplify management and potentially reduce fees. Check with your employer to see if there are financial wellbeing resources or benefits available that could help with organizing your finances.

Putting in a little effort now to spring clean your finances can lead to better habits and a more secure future!

Investment advisory services provided through CBIZ Investment Advisory Services, LLC, a registered investment adviser and a wholly owned subsidiary of CBIZ, Inc.

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