Have you spring cleaned your home every year, and realized how important it is? Well the same thing goes for your finances! It’s important to spring clean your finances, reset (at least) once a year and evaluate your goals!
I have to laugh when I think about spring cleaning at home. Each year I announce it’s time and everyone runs and hides. In reality, spring cleaning is an important time where you purge all that stuff you don’t use, get rid of clothes and shoes you haven’t worn. But most importantly… you DEEP CLEAN your humble abode.
That’s right ladies and gents, it’s time to bust out that Clorox, the Mr. Clean Eraser and Pinesol! Whatever you use, it’s time to get it together and SCRUB. Get rid of cob webs, clean out the corners of the floors that are missed by the mop, and whatever else you need to do.
I had to do this each year faithfully – on top of Saturday morning cleaning, I remember thinking, ‘Dang we clean this house several times a week and now it’s time to spring clean? Ain’t it clean enough??’
As an adult, I understand better and realize the same thing goes for when you spring clean your finances! Your weekly and monthly activities of paying bills, shifting money, adjusting, saving and investing all need a SPRING CLEANING!
The perfect time to run the white glove over your finances and your habits is now. This is when you review the goals you set and determine if you are on track or need to readjust. This is when you either congratulate yourself for a job well done or CHECK yourself for misbehaving.
Ways To Spring Clean Your Finances
- Savings – do you have your emergency fund? Have you worked to increase it? Your savings is important, so let’s make sure you are on the right track!
- Debt – are you on track with your payoff plan? Would it be smart to slow down or speed up based on other things that have come up?
- Insurance – do you have enough life insurance for your loved ones? Should you increase it? Do you need a new policy? Can you get a better rate for the same coverage?
- Pension/401K – check your pension and retirement plan balance at work. Are you saving enough? Do you need to transfer your 401k because of a new job?
- Social Security – regardless of your age, if you haven’t received a statement in a while, request one to see what your payout is projected to be. If it is lower than average, it’s time to get to work!
- Investments – do you have investments outside of your employer? Is it time to open an IRA or increase percentages? How are your mutual funds doing? Should you increase your contributions?
- Reflect – is anyone draining your finances? Should you give to someone in need who wouldn’t dare ask? Should you STOP giving to people who are using you as a crutch?
- Couples – it’s time to have a ‘sit down’ chat to ensure you are both still on the same page. Be open to new ideas, even if it changes the ‘plan’. Listen to each other and decide together on your next course of action. If one is in disagreement, talk it out until you can compromise.
Let me know how your spring clean goes! Did you find you were on track or had to adjust?