Summary
An annual financial spring cleaning can help you cut out the clutter, maintain a strong financial foundation, and stay on track toward your goals.
Use These Annual Steps to Help Strengthen Your Financial Foundation
Spring is here, and the season of renewal and growth offers a good opportunity to freshen up your finances. Whether you’re looking to get your budget back on track, save more money, or simply get more organized, we believe these nine tips can help you achieve your financial goals and start the season off on the right foot.
Financial Spring Cleaning Tip #1: Review Your Budget
Take a look at your income and expenses and make sure your budget is still working for you. Are there any areas where you could cut back or save more money? Consider using budgeting apps or tools to help you track your spending and identify areas for improvement. Remember, your budget isn’t something to “set and forget.” Rather, it should be something you revisit frequently so that it can evolve with you as your needs and life circumstances change.
Financial Spring Cleaning Tip #2: Check Your Credit Report
Your credit score plays a significant role in your financial health, so it’s important to keep an eye on it. This spring, check your credit report for errors or inaccuracies and dispute any errors you find. You can get a free credit report from each of the three major credit bureaus once per year, or through this government-sanctioned partner. You can also learn more about credit reports in general at this Federal Trade Commission link.
SEE ALSO: The Importance of Estate Planning at Any Adult Phase of Life
Financial Spring Cleaning Tip #3: Declutter Your Apps
Having so many apps available at our fingertips is convenient, but our smartphones can also cause us to make poor financial decisions for the sake of said convenience. If you use food and grocery delivery apps, for instance, you may be saving time. However, are you also paying double for the same items you could pick up on your own? Take time to delete shopping apps such as Postmates, Uber Eats, and Doordash, and cut down on fees by picking up your own items instead.
Financial Spring Cleaning Tip #4: Set Financial Goals
It’s always a good time to set financial goals, but spring is ideal because you’re a few months out from your New Year’s resolutions. Take this time to determine whether your original goals are still serving you and whether you’re making progress. Regardless of the specifics of your financial goals, having clarity and a plan for achieving each one can help keep you motivated and on track.
Financial Spring Cleaning Tip #5: Automate Your Savings
If you’re reviewing your budget and your goals and you notice you’re struggling to save money consistently, consider setting up automatic transfers from your checking account to a savings or investment account. This can help you build your savings on autopilot, especially if you’re prone to overspending or forgetting to make transfers into your savings accounts.
Financial Spring Cleaning Tip #6: Review Your Insurance Coverage
Make sure you have adequate insurance coverage for your home, car, and other assets. If you haven’t reviewed your coverage recently, now is a good time to do so. Remember that, as your life and finances evolve, so do your insurance needs.
SEE ALSO: Do Stay-at-Home Parents Need a Retirement Plan?
Financial Spring Cleaning Tip #7: Purge Your Financial Documents
Financial paperwork can really pile up. Even if you tend to access your accounts online, you may be receiving paper statements. This spring, consider purging any financial documents or paperwork you no longer need. This can help you stay organized and reduce clutter, while also protecting your sensitive financial information.
Financial Spring Cleaning Tip #8: Negotiate Your Bills
Take some time to review your monthly bills and see if there are any areas where you can negotiate a better rate. This could include your internet or cable bill, insurance premiums, or even your cell phone plan. Often, providers will offer discounts or promotions if you ask, so don’t be afraid to negotiate. This is also a great time to cancel any paid apps, streaming services, or other services you no longer use.
Financial Spring Cleaning Tip #9: Evaluate Your Investment Portfolio
Now is also a good time to review your portfolio and make any necessary adjustments. Consider whether your investments are aligned with your long-term financial goals and whether there are any areas where you could diversify or rebalance your portfolio. If you’re unsure where to start, consider working with a financial advisor to help you make informed decisions.
Are You Undertaking a Financial Spring Cleaning?
As flowers begin to bloom, it’s a smart time to set your finances up to flourish, too. A financial spring cleaning can help you dust off your goals, embrace stronger financial habits, and move forward into the rest of the year with confidence.
If your financial spring cleaning checklist includes a conversation with a financial advisor, we can help. At Aviance, we offer personalized wealth planning and investment management advice designed specifically for you and your family. If you’d like to learn more, please schedule a call with us today. We look forward to hearing from you!
Aviance Capital Partners, LLC (“ACP”) is an SEC registered investment adviser located in Naples, Florida. Registration as an investment adviser is not an endorsement by securities regulators and does not imply that ACP has attained a certain level of skill, training, or ability. While information presented is believed to be factual and up-to-date, ACP does not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. Not all services will be appropriate or necessary for all clients, and the potential value and benefit of the ACP’s services will vary based upon the client’s individual investment, financial, and tax circumstances. The effectiveness and potential success of a financial plan depends on a variety of factors, including but not limited to the manner and timing of implementation, coordination with the client and the client’s other engaged professionals, and market conditions. The tax and estate planning information provided is general in nature, which should not be construed as specific financial planning or tax advice tailored to an individual reader. ACP suggests that readers consult a financial professional, attorney or tax advisory professional about their specific financial, legal or tax situation. Customized financial planning indicates that financial planning will be informed by the material financial and investment circumstances of the client, as communicated by the client to the adviser, but may not consider literally all aspects of a client’s financial affairs. Past investment performance does not guarantee future results. All investment strategies have the potential for profit or loss, and different investments and types of investments involve varying degrees of risk. There can be no assurance that the future performance of any specific investment or investment strategy, including those undertaken or recommended by ACP, will be profitable or equal any historical performance level. Additional information about ACP, including its Form ADV Part 2A describing its services, fees, and applicable conflicts of interest and its Form CRS is available upon request and at https://adviserinfo.sec.gov/firm/summary/146597.
For current ACP clients, please advise us promptly in writing, if there are ever any changes in your financial situation or investment objectives, if you wish to impose any reasonable restrictions to our management of your account, or if you have not been receiving at least quarterly account statements from your account custodian.
