Spring is in the air—fresh flowers, sunshine, and of course, spring cleaning. But before that warmer weather brings you out of hiding, now’s a good time to review your finances and make sure you’re on track to hit your goals. If that sounds stressful, don’t worry—we’re here to help. Here are four steps to clean your finances this spring.
1. Review and update your budget
As always, the best place to start is the beginning. If you’re already working with a budget, start by comparing it with the last few months of spending. You may find that you’re spending more or less in a category than expected. This is also a great time to review your home, auto, and life insurance policies and premiums to ensure your coverage still fits your needs. Adjust your budget accordingly to stay aligned with your financial goals.
Revisit those goals, too. Some may not feel as timely or important now. Maybe you postponed your vacation until fall, or you need to prioritize saving for a new car—spring is the perfect time to refresh those goals and get back in touch with why you’re saving in the first place. If progress feels slow, consider breaking down your goal into small, more manageable steps. If you’re ahead, you may want to challenge yourself.
2. Check your credit score
Another important step is to review your credit score and pull your annual free credit reports from all three bureaus. Bank snapshots are helpful, but the full reports often reveal more—and the information can vary. If you find errors, you should report them immediately since mistakes can negatively impact your score. If you’re concerned about identity theft, you can reach out to the credit bureaus about a freeze and take the appropriate steps to report it.
3. Tackle your debts
Use your credit report as a guide to tackle debt, especially for high-interest loans. Some people prefer to take on high-interest debt first, since it can quickly grow out of control, while others prefer to pay off the smaller balances first. Whatever you decide is best for your goals, make sure your new budget reflects it.
4. Organize, digitize, and automize
Since you may be doing some housekeeping right now, how about organizing your financial documents? Between bank statements, tax documents, bills, and more, it often feels like you’re housing a whole forest’s worth of paperwork. If you prefer hard copies, tidy and update your filing system. If you don’t have a system, now’s the time to develop one so you can more easily keep track of things and find them as needed.
While you’re at it, consider signing up for eStatements or paperless billing if you’re looking to save space. If you’re already digital, or just moving over, decide where documents will live and make sure to have backups of things that are less easily replaced. And, set up automatic bill pay to save time, avoid missed due dates, and reduce stress.
Key takeaways:
- Regular budget check-ins can help keep you on track for your goals.
- Check your credit score and credit reports at least once a year and report inaccurate information.
- Digital organization tools can help you stay on top of your budget, simplify bills, and manage other important documents like car titles or insurance documents.
Not many people love to clean, let alone clean their finances. But spending the time now to review things like your budget and your credit score can help you hit your financial goals and potentially save you from surprises down the road. Do you prefer to track your finances digitally or with a pen and paper? Share in the comments below!
