By The weather is warming, flowers are blooming, horses are racing, people are socializing — spring is in the air! The arrival of spring also means that it’s time to tidy up our homes, declutter, and spring clean. This season of rejuvenation presents an opportunity to extend our cleaning efforts beyond our home and into a different space: our finances. Just as we spring clean our homes, undergoing a spring financial checkup can bring a renewed sense of financial well-being.
Let’s explore some ways we can do some spring cleaning on our financial health:
Clean Up Your Accounts
Having accounts spread across multiple institutions might make your financial house feel disorganized and cluttered. Consider consolidating your accounts for easier access, better transparency, and a clearer understanding of your financial goals.
Example: What about that old 401(k) you had from the job you left five years ago? Is it still sitting there idle? It might be time to consider your options.
Organize Your Financial Records
Organizing financial records is similar to tidying up your home. Take this time to gather and sort your banking statements, investment account statements, bills, tax documents, etc. Develop a system that allows for easy access and ensures you have all the necessary documentation in one place. You’ll thank yourself once tax season rolls around next year.
Example: Do you have several business-related expenses that you write off each year? Create a filing system where you keep all your receipts, mileage logs, etc., so that they’re all in one place when it comes time to file your taxes.
Refresh Your Financial Goals
Remember those New Year’s goals that you made? Yeah…. about those. Reflect on your objectives from the beginning of the year and evaluate your progress. Are you on track to achieve them? Do your goals still align with your current circumstances, or has life thrown you a curve ball? Whether it’s saving for retirement, paying off debt, or investing, make the necessary adjustments and develop a plan to stay on course.
Example: Have you gotten a raise in the last year? Take a look at how much you’re putting away each month for a down payment on a house and see if you can save even more to reach that goal sooner.
Optimize Your Investments
If you are a DIY investor, this may be a good time to review your holdings. Consider consulting with a financial advisor like one of us at Family Financial Partners to ensure that your investments align with your risk tolerance and long-term goals. Remember, periodic and consistent reviews and adjustments are essential for staying on track for financial success.
Example: Is the current market volatility making it stressful to look at your portfolio’s swings? Let us take some of that management off your hands. We can use our decades of experience to make incremental adjustments to your holdings to the best of our ability.
Just like spring cleaning, a financial check-up can be a bit overwhelming at first, but the end result will be a cleaner, more organized financial life. By incorporating these habits into your yearly routine, you will develop a healthier financial mindset and make better-informed decisions that can help lead to long-term financial well-being. So, grab a cup of coffee, put on some music, and start your spring financial check-up — your financial future will thank you later.
Feel free to contact me or anyone else on our team for a free consultation; we’d love to help walk you through this year’s spring cleaning.
Article by Jacob Buckley, MBA, Wealth Advisor at Family Financial Partners — a financial services firm in Lexington, Kentucky.
