01 Mar The ABC’s of Financial Spring Cleaning
With March 20th being the first official day of spring, it’s about that time of year to start fresh and engage in some spring cleaning. “Out with the old and in with the new” doesn’t only apply to clothing and household items; the phrase is also relevant to your finances. This is the ideal time to evaluate your assets and make sure that you’re on the right track for the future.
- Are you saving enough now for the future?
- Do you have all of your accounts in order?
- Have you looked through your account statements recently?
- Are you satisfied with your retirement plan?
- Are your service contracts still necessary and up to date?
If you answered “no” or “I don’t know” to any of these questions, some financial spring cleaning is definitely in order. These tips can help give you the fresh start you need.
- Account clean up.
It’s time to sit down and evaluate whether all of your current accounts are truly serving a purpose. Are there accounts that you hardly use? Can multiple accounts be consolidated? Are your accounts at multiple different banks necessary? How is your retirement plan looking? Occasionally, people still have old retirement accounts from previous employers and instead of handling multiple accounts; you can roll your old accounts into your new one. Cleaning up your accounts will make it easier for you to gain control of your finances and monitor your main accounts regularly, rather than spreading yourself too thin with numerous accounts.
- Budget reevaluation.
Your personal and family budgets are key components in the financial planning process. Take a serious look at your spending for the past 3-5 months and search for any problems areas. Are you spending too much money on certain things? Do you see areas where you can cut down on spending and save more? Are you budgeting more than you need to for certain areas? It is important to stay on top of your budget and adjust it when necessary. As we have stressed in our other blogs, it will benefit you greatly in the long run if you put money away into your savings account whenever possible. Especially if you are saving up for big events in the future, monitoring and adjusting your budget is incredibly beneficial.
- Check statements.
We are all in favor of the new age of digital technology, but with the emergence of online banking comes the potential for more banking mistakes. While it may seem like a hassle or unnecessary to keep track of your banking statements, it can ultimately save you money in the long run. Never assume that no mistakes have occurred; your account could have been charged for a purchase you never made or charged twice. If you never check your statements to verify your account charges, you will miss out on opportunities to get your money back.