Finances. Definitely not my favorite word. I just like shopping, okay?! Unfortunately, we have to be adults and plan for the future, yada, yada, yada. So I tried to pretend like it was like spring cleaning my house. It kind of worked, but also didn’t. But it was something that needed to happen so I’m glad we did it!
REVIEW THE BUDGET (See how dirty the house really is)
First we have to see what we are actually spending our money on. This can be eye opening to see how many times you are going to get coffee every week (or maybe it’s your spouse and not you)! Figure out what is important, what is a recurring expense, make sure you and your spouse are on the same page and make a plan from there!
CUT OUT THE EXCESS (Sort everything into piles)
So you just reviewed what is vital to your monthly or maybe weekly finances, now it’s time to figure out what isn’t vital that you can get rid of. See if there is a subscription or two you aren’t using that you can cancel or maybe you are eating out four times a week and can change to eating out only three times a week. There is normally something that isn’t as important as it used to be that you can cut your spending on.
SET NEW GOALS (Write out a to-do list)
Make some goals together, look at this year, at five years, at ten years, and figure out where you want to be. What is the most important thing in those years that you need to start working towards, factor that in! Are you hoping to go on a fun trip this year? Or buy a new car? Maybe you want to start a college fund for your kids. It’s important to look at those expenses now and plan for as much as you can beforehand.
PLAN FOR TAXES (Find the dishes your child hid in their room)
Maybe you have already filed your taxes and you’re spending fun money all over the place, but if you haven’t and you are putting off filing because you are going to owe this year, now is the best time to figure out how to work that into your budget! Sit down and plan out how you’re going to pay, and then make a plan for next year too so it doesn’t sneak up on you.
CLEAR OUT THE DEBT (Clean out the pantry)
List all debts out and include the interest rates and minimum payments. Focus on paying off high-interest debt first or use a snowball method and pay off the smallest balance first. Consider refinancing or consolidating credit card debt to get a lower interest rate and a lower monthly payment. If needed, talk to a financial planner on how to best do this.
CHECK YOUR CREDIT SCORE (Clean under the couch)
You can get a free credit report once a year from Equifax, Experian, and TransUnion. Monitor your score and work on improving it by making timely payments and paying off debt.
ELEVATE YOUR SAVINGS (Sweep, vacuum, mop, repeat)
Make sure you have factored in what you want to add to your savings each month. A good rule of thumb is to have an emergency fund (normally 3-6 months of expenses) in your savings. Track your retirement contributions and make sure you’re on track. Do research to make sure your money is making money for you with the correct savings accounts. If your company matches your 401k or an HSA account, make sure that is being added to every time.
REVIEW INSURANCE POLICIES (Use different cleaning products on different surfaces)
If you’re anything like the rest of the world right now your car insurance went up this year. It might be time to shop around and find a new policy. It’s good to check your health insurance, life insurance, and home insurance to see if you can find savings there as well!
REEVALUATE YOUR INVESTMENTS (Clean the windows)
Make sure your investment portfolio still aligns with your goals. Review any accounts that have high fees and look into lower cost options.
It is a hard economy right now so I hope this helps you during this time. Let me know what else you’re spring cleaning in the comments!
