Now that spring is here, it’s the perfect time to rejuvenate not just your home, but also your finances.  Just as you declutter your living space, it’s essential to tidy up your financial life.  Here are four key areas to focus on:

  1. Spending Plans:
  • Review Your Current Budget: “Budget” is a bad word to many, but it doesn’t necessarily mean spending cuts.  Think of your budget as a spending plan that aligns with your values.  Review your income, expenses, and savings goals.  If necessary, consider reallocating funds to better align with your financial objectives.
  • Create a New Spending Plan:  Based on your review, create a revised spending plan for the upcoming months.  Set realistic and achievable financial goals.
  1. Decluttering:
  • Organize Your Financial Paperwork:  Sort through the piles and piles of bills, bank statements and receipts.  Keep only the most recent copies of bills and statements or consider keeping a master list of accounts and shredding the individual documents.
  • Even tax returns?  The statute of limitations for an IRS audit is typically 3 years but can be up to 6 years for more substantial errors.  Consider keeping your tax returns and supporting documentation for 6 years then shredding them.
  • Go Digital: What should you keep in paper form?  The answer for most people is very little!  Sign up for electronic delivery of bills, statements, and investment information to reduce paper clutter.
  • Digitize your documents:  Consider scanning important documents and storing them electronically.  This can help reduce clutter and make it easier to access information when needed.
  1. Get Organized:
  • Consolidate Accounts:  If you have multiple bank accounts or retirement accounts, consider consolidating them to simplify your financial management.
  • Set Up Automatic Payments:  Automate your bill payments to avoid late fees and ensure you stay on track financially.
  • Start a 2024 Tax Folder:  Collect tax related receipts and documents throughout the year to make the next tax filing season a breeze.
  • Create a Financial Inventory:  A master list of your assets, liabilities, and insurance policies including the location and online access information can be invaluable for managing your day-to-day finances and for your loved ones in case they need to step in for you.  However, be sure to keep this information in a safe place.
  1. Refresh Your Financial Goals:
  • Review your financial goals:  Reflect on your long-term financial objectives.  Are they still relevant?  Adjust them if your circumstances have changed.
  • Set new goals:  Identify new financial goals for the upcoming months.  Whether it’s saving for a vacation or funding your grandchildren’s education, set specific measurable goals.

Just like corners of your home can collect dust, your financial house needs occasional cleaning.  Spring cleaning your finances can help you start the new season with a fresh perspective and a solid financial plan.  By having a spending plan, decluttering your financial documents, getting organized, and refreshing your financial goals, you can set yourself up for financial success in the months ahead.

Allison K. Dubreuil, CFP®
Director

Disclosures:

This is provided for informational purposes only and should not be interpreted in any way as investment, tax, accounting, legal or regulatory advice. An investor must take into consideration his/her individual circumstances. 

There is no guarantee investment strategies will be successful. Investing involves risks including possible loss of principal. There is always the risk that an investor may lose money. A long-term investment approach cannot guarantee a profit.  All expressions of opinion are subject to change. This article is distributed for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Investors should talk to their wealth advisor prior to making any investment decision.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification mark CFP®, in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.