7 Steps to Spring Clean Your Finances
Spring is an ideal time to clean up your finances, clear out the clutter, and get a fresh start. Whether you're finding more money left over at the end of the month and need a budget tweak, dealing with too many automatically recurring expenses, or needing to apply the brakes on your credit card spending, now is the perfect time to take control.
Here are seven suggestions to help you get a better handle on your finances this spring season.1. Clean Up Your Spending
Whether you call it a budget or a spending plan, reviewing your past few months’ expenses is crucial. Write down your recurring bills and expenses and assign a priority number from one to three, with one being essential to avoid eviction and three being nice-to-haves you could live without. Clear out or drastically reduce your level three expenses. For example, consider cutting your high cable bill and opting for less expensive streaming services.
2. Clear the Decks and Put Your Savings on Autopilot
Redirect the money you save from cutting unnecessary expenses into your emergency fund. If you don’t have an emergency fund to cover at least three to six months' expenses, you could be one or two paychecks away from financial disaster. Automate your savings to ensure you’re consistently building this crucial safety net and consider a High-Yield Saving Account (HYSA) over your traditional low-yielding savings account.
3. Review Your Tax Withholding
Looking forward to a big tax refund this year? Remember, that refund is essentially a 12-month interest-free loan you’ve given to the government. Adjust your withholding for a better balance and use the extra money to bolster your savings or investment plans.
4. Inventory Your Material Wealth
Spend an hour or two photographing and cataloging your household possessions, focusing on big-ticket items like furniture and electronics. Note the approximate purchase price and date. As you acquire new items, save the receipts and update your inventory. This can be invaluable for insurance purposes.
5. Check Your Homeowner or Renter Insurance
Include a complete insurance check-up in your spring cleaning routine. Review your policies to ensure your coverage is adequate to replace everything you've inventoried. Given rising replacement costs, it’s essential to have sufficient coverage. Also, consider updating your life insurance if your family has grown or your income has increased.
6. Plug Into Technology
Utilize the free and secure technology available through your online banking or financial planning platform to keep your finances in check. Most banking sites offer settings to send warnings when your account balance is low or your credit card spending exceeds a certain amount. Leverage these tools to maintain control over your financial habits.
7. Get Your Paper Files in Order
Organize your financial documents with a simple filing system. An expandable folder with month separator tabs from your local office supply store can help you keep track of important papers. This prevents neglect and passive spending decisions, allowing you to stay on top of your financial situation.
Finally, remember that bad financial habits stem from neglect and passive decisions. Spring is the ideal time to get back in the driver’s seat and regain control of your financial picture. Clear out the clutter and eliminate what isn’t working for you.Ready to Take Control of Your Finances?
At Coffeehouse Capital, we're here to help you navigate your financial journey. Contact us today to schedule a free consultation and take the first step toward a more secure financial future. Together, we can make this spring the start of a brighter, more organized financial life.
Schedule your free consultation here.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.