As the seasons change, it’s the perfect time to give your finances a thorough spring cleaning. Take a look at recommendations to help organize your assets and help reduce one of the biggest stresses for any individual or family.
Assess Your Financial Landscape
The first step in your financial spring cleaning is to get a clear picture of your current situation. Gather all your financial documents, including bank statements, investment reports, tax returns, and insurance policies.
Create a comprehensive list of all your accounts and assets. This overview will serve as the foundation for your financial organization efforts.
Consolidate and Simplify Your Financial Documents
With your financial landscape mapped out, look for opportunities to streamline:
- Merge duplicate accounts to reduce paperwork and simplify management.
- Close unused accounts that may be costing you in fees.
- Organize all your account information in a secure central location, such as a password-protected spreadsheet or a secure financial management app.
Streamline Your Bill Management
Efficient bill management can save you time and help avoid late fees:
- Set up automatic bill payments for regular expenses.
- Remove any automatic payments for expenses you no longer have.
- Create a bill payment calendar to keep track of due dates for bills that can’t be automated.
- Consider bill consolidation services if you’re juggling multiple payments.
Optimize Your Debt Strategy
Take a close look at your current debts:
- Review all debts and their interest rates.
- Explore debt consolidation options to potentially lower your overall interest payments.
- Develop a structured debt repayment plan, focusing on high-interest debts first.
Revamp Your Financial Budget
Your budget is the cornerstone of your financial health:
- Analyze your recent spending patterns to identify areas for improvement.
- Adjust budget categories to reflect your current lifestyle and financial goals.
- Set new financial goals for the year, whether it’s increasing savings or paying down debt.
Boost Your Savings and Investments
Make sure your money is working hard for you:
- Review your investment portfolio and rebalance if necessary to maintain your desired asset allocation.
- Maximize contributions to retirement accounts like 401(k)s and IRAs.
- Set up automatic transfers to savings accounts to build your emergency fund and other savings goals.
Update Insurance Coverage
Adequate insurance is crucial for protecting your financial well-being:
- Review all insurance policies, including health, life, auto, and home insurance.
- Identify any gaps in coverage that need to be addressed.
- Shop around for better rates to ensure you’re getting the best value for your premiums.
Secure Your Financial Information
In today’s digital age, securing your financial information is more important than ever:
- Update passwords for all financial accounts, using strong, unique passwords for each.
- Set up two-factor authentication wherever available for an extra layer of security.
- Shred old financial documents that are no longer needed to prevent identity theft.
Check Your Credit
Your credit score can impact many aspects of your financial life:
- Review credit reports from all three major bureaus (Equifax, Experian, and TransUnion).
- Dispute any errors you find in your credit reports.
- Set up credit monitoring to stay informed about changes to your credit profile.
Plan for the Future
Don’t forget to look ahead and prepare for the long term:
- Update or create a will to ensure your assets are distributed according to your wishes.
- Review beneficiary designations on retirement accounts and insurance policies.
- Consider meeting with a financial advisor to discuss your long-term financial strategy.
Implement a Maintenance Plan
To keep your finances in top shape year-round:
- Schedule regular financial check-ups to review your progress.
- Set reminders for important financial tasks like tax deadlines or insurance renewals.
- Commit to ongoing financial education by reading books, attending workshops, or following reputable financial blogs.
By following these steps, you’ll give your finances a thorough spring cleaning and set yourself up for financial success. Remember, financial organization is an ongoing process.
Regular maintenance and reviews will help ensure that your financial house stays in order throughout the year.
About the Financial Planning Author
Alexander Langan, J.D, CFBS, serves as the Chief Investment Officer at Langan Financial Group. In this role, he manages investment portfolios, acts as a fiduciary for group retirement plans, and consults with clients regarding their financial goals, risk tolerance, and asset allocation.
With a focus on ERISA Law, Alex graduated cum laude from Widener Commonwealth Law School. He then clerked for the Supreme Court of Pennsylvania and worked in the Legal Office of the Pennsylvania Office of the Budget, where he assisted in directing and advising policy determinations on state and federal tax, administrative law, and contractual issues.
Alex is also passionate about giving back to the community, and has participated in The Foundation of Enhancing Communities’ Emerging Philanthropist Program, volunteers at his church, and serves as a board member of Samara: The Center of Individual & Family Growth. Outside of work and volunteering, Alex enjoys his time with his wife Sarah, and their three children, Rory, Patrick, and Ava.
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Disclosure
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice.
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.
Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC.
Investment Advisor Representative, Cambridge Investment Research Advisors, Inc. a Registered Investment Advisor. Cambridge and Langan Financial Group, LLC are not affiliated.
Cambridge does not offer tax or legal advice.
