Financial Spring Cleaning: How to Declutter, Streamline, and Strengthen Your Finances

By Morgan Weil, CFP^®
Senior Wealth Manager & Financial Advisor, RJFS

Spring is often associated with the start of regrowth as trees begin to bud and the first flowers bloom with the warming and lengthening days. Spring is often the time that people start refreshing their living space and cleaning away the dust and grime accumulated during the winter, but it’s also a great opportunity to refresh and organize your personal finances. Here are some topics for a financial "spring cleaning" to help you streamline and optimize your financial situation

1. Review and Update Your Budget

• Why: Budgets can get stale or outdated over time. A thorough spring cleaning of your budget ensures it's still aligned with your goals and lifestyle.
• What to do:
• Assess your monthly income, expenses, and savings goals.
• Cut out any unnecessary spending or subscriptions that no longer serve a purpose.
• Adjust your budget for any new financial goals or changes in income (e.g., a raise, job loss, or new expenses like childcare or a new home).

2. Consolidate and Simplify Accounts

• Why: Having too many accounts—whether credit cards, bank accounts, or investment accounts—can lead to confusion, higher fees, and missed opportunities.
• What to do:
• Evaluate whether any accounts can be consolidated to save on fees and make them easier to manage.
• Look for high-fee accounts (like checking or savings accounts) and see if you can switch to better options.
• Consider combining investment accounts or retirement funds if you have multiple, making it easier to track progress.

3. Audit Your Subscriptions and Recurring Payments

• Why: It's easy to forget about small subscriptions that add up over time, especially those that auto-renew.
• What to do:
• Go through your bank or credit card statements to identify recurring payments.
• Cancel or pause subscriptions you don’t use regularly (e.g., streaming services, gym memberships, or magazine subscriptions).
• Consider negotiating with service providers (internet, cable, phone) for better rates or switching to more affordable options.

4. Review Your Credit Report and Score

• Why: Regularly checking your credit report ensures there are no inaccuracies or fraud affecting your score, and helps you stay on top of debt.
• What to do:
• Obtain a free copy of your credit report from the major bureaus (Equifax, Experian, and TransUnion) and review it for errors or unfamiliar accounts.
• Address any inaccuracies or disputes to improve your credit score.
• Monitor your score and look for ways to improve it (e.g., paying down high-interest debt, improving credit utilization).

5. Declutter Your Digital Financial Documents

• Why: Financial clutter isn’t just physical—digital clutter, such as outdated records, documents, and spreadsheets, can also cause confusion and inefficiency.
• What to do:
• Organize your digital files into clear categories (e.g., tax returns, bills, investment statements).
• Delete or archive documents you no longer need (old receipts, expired contracts, or outdated policies).
• Ensure your important financial documents (like wills or insurance policies) are securely stored and easily accessible.

6. Revisit Your Emergency Fund

• Why: Your emergency fund should be reviewed regularly to ensure it can cover your current living expenses in case of unexpected events.
• What to do:
• Check if your emergency fund is sufficient to cover at least 3-6 months of living expenses.
• If you’ve had any significant changes (e.g., a new job, a change in living situation), adjust your emergency savings goal.
• If your fund is lacking, start building it back up by automatically transferring a set amount into a separate savings account.

7. Review Your Retirement Plan

• Why: Spring is an ideal time to assess your progress toward retirement and adjust your strategy.
• What to do:
• Review your 401(k), IRA, or other retirement accounts and ensure you are on track to meet your long-term goals.
• Rebalance your portfolio to align with your risk tolerance and time horizon.
• If you’re not contributing enough to your retirement savings, try to increase your contributions, especially if your employer offers a match.

8. Organize and Review Your Insurance Coverage

• Why: Your insurance needs may change over time as your financial situation evolves.
• What to do:
• Review all your policies (health, auto, home, life, disability) to ensure they still match your current needs.
• Compare your premiums and coverage limits to ensure you're getting a good deal.
• Consider bundling policies or shopping around for better rates on home and auto insurance.

9. Evaluate Your Debt

• Why: Managing debt is a crucial part of personal finance, and spring is a good time to evaluate your outstanding balances and repayment strategies.
• What to do:
• Make a list of all your debts, including credit cards, student loans, mortgages, and personal loans.
• Review interest rates and prioritize paying down high-interest debt first.
• Consider consolidating or refinancing debt to secure lower interest rates.

10. Set New Financial Goals

• Why: Financial goals can shift over time as priorities change. Spring is a good time to reflect and set new goals for the upcoming months.
• What to do:
• Assess whether your short-term and long-term financial goals (buying a home, paying off debt, saving for travel, etc.) are still in line with your current life circumstances.
• Create clear, measurable goals for saving, investing, or reducing debt, and outline the steps needed to achieve them.
• Break down large goals into smaller, manageable tasks to track progress throughout the year.

11. Check for Tax Planning Opportunities

• Why: Tax laws and deductions can change, and early planning can help you maximize your tax situation for the year.
• What to do:
• Evaluate any tax deductions or credits you might be missing out on (e.g., retirement savings contributions, educational expenses, home office deductions).
• Start organizing tax documents early (W-2s, 1099s, medical expenses, etc.).
• Consult a tax advisor if you have major changes in your finances to ensure you're not missing any opportunities.

12. Clean Up Your Financial Mindset

• Why: Personal finance is not just about numbers—it’s also about mindset. Cultivating a healthy relationship with money can improve your financial success.
• What to do:
• Reflect on any financial habits or behaviors you want to change (e.g., impulse buying, procrastinating on savings).
• Consider adopting new habits or mindsets to support your financial well-being, such as practicing gratitude for what you have, staying mindful of your spending, or setting up automatic savings.
• Read financial books, listen to podcasts, or attend webinars to improve your financial literacy.

By tackling these "spring cleaning" tasks for your personal finances, you can ensure that your financial house is in order and set yourself up for better financial health in the months ahead.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Morgan Weil and not necessarily those of Raymond James.