spring clean your finances

Putting the Spirit of Springtime Into Your Financial Planning

April 21, 2024 | Leave a Comment

Springtime is such an amazing time of year. It is one of my favorites. I love to find ways to improve my life around this time of year. Many people focus on spring cleaning or specific tasks, but I like to take a big-picture view of things at this time to improve our finances and more. How can you put the spirit of spring into your financial planning? Here’s how we are doing it.

Why We Focus on Springtime

I suffer from a bit of seasonal depression, which a large number of people do. This makes springtime a great time to start doing anything. I usually lose focus throughout the winter and I’m really just trying to survive that time. When spring hits, it feels like I can breathe again and, more importantly, give attention to the areas of my life that need it.

This might be different for other people. However, chances are there is a season when you’re more productive, more enthusiastic, and more positive. That should be the season you take to focus on improving your life – whether it is your finances or otherwise.

How to Put Spirit Into Your Financial Planning

When I think of spring I think of rejuvenation and growth. These are two important things when it comes to financial planning for your family. You have to think about ways to change your budget and your financial approach to match the growth you want.

Additionally, rejuvenating your approach to money can help you better align your lifestyle with your long-term money goals. Here are some ways we are doing this…

Plan out a monthly review of our finances. We often neglect to sit down and talk about our financial habits, review our money management, and really look at how our financial plan is working for us. Moving forward, we will have a monthly “money date.”

Keep a long-term mindset. In general, it’s easy to get caught up in the here and now. However, your money will work for you more if you keep your eyes on the future.
Maintain our emergency fund. We’ve had issues maintaining our emergency fund in the past and it creates big issues in our debt freedom plan.
Invest in ourselves first. When we don’t set aside money to invest in ourselves we don’t feel positive about our finances. That’s just a fact!

Place any contributions to savings, retirement, etc. on automatic. Another thing that could use some rejuvenation is the way we “do” savings. We usually transfer things manually and it doesn’t always get done. Putting these things on auto-pilot will help a ton.

Readers, do you ever get inspired to rejuvenate your financial plan? Does it happen around the same time every year? I’d love to hear from you in the comments.

How to “Spring Clean” Your Finances

December 7, 2023 | Leave a Comment

It is mid-May, which means many of us are going through our closets, deep cleaning our homes, and getting rid of stuff we just don’t need anymore. It feels good to go through spring cleaning each year. These actions help you clear out things that are holding you back. You can do something similar with your money. Here are some ways to “spring clean” your finances.

7 Ways to Spring Clean Your Finances

Spring cleaning your finances, in some ways, looks just like cleaning out your home. You have to literally get rid of things in your budget, clean out closets and sell things, and reassess what you are doing in terms of managing your money. Here are seven things you should do this spring to evaluate your finances.

Sweep out bad money habits. We all have bad habits that are hanging out in the corners like dust bunnies. Examine your spending habits and determine what is detrimental to your financial goals. For example, a lot of people have a bad habit of eating out when there is food at home. Identify what is holding you back and get rid of it.

Catch up on any late payments and get ahead if you can. The spring is a great time to hold a yard sale, raise some extra money, and pay off debt or pay bills you need to get current. Get caught up on anything you’ve fallen behind on and try to get ahead where you can. This will save you money in the long run.
Toss out any debt you may have. Staying in debt is almost like holding onto an old sweater that you never wear. It is holding you back and just taking up space where you could fit something better. Get rid of it as soon as you possibly can.
Dust off your budget. Take a hard look at your budget and decide if it is truly working for you. Many people don’t think about creating space in their budget for things that truly matter to them. For instance, if travel is something that is important to you, be sure you make room in your budget to do it.

Create a simple money system to track key numbers. Most people just aren’t paying enough attention to their money. Usually, this is because they make it difficult for themselves to do so. Find a way to tidy up your finances and make it easier to track things like what you are spending, how much you are saving, and debt payments.
Plan and budget for irregular expenses through the end of the year. The end of the year brings a lot of irregular spending for many families, including holiday spending, travel, and back-to-school costs. Make a plan for how you’ll deal with these expenses.
Clear out your paperwork. Old, unnecessary clutter, like paperwork, can be a hindrance to your finances. Instead of keeping everything in an old-fashioned filing cabinet, consider how you can start keeping track of things digitally and get rid of that stack of papers. It will help you keep closer track of your finances too.

How Often Should You Review Your Attitude Towards Money?

Annual reviews or taking a moment to spring clean your finances each year is always a good idea. However, the frequency in which you review your attitude towards money may change with time. You may find that a quarterly review is more necessary for you, especially if you have aggressive debt payoff goals. Others may find it easier to do a quick check-in every month. In the end, it is important to find exactly what works for you in terms of reviewing and organizing your money.

Readers, do you have any annual “to-do” items for spring cleaning your finances?

Financial Spring Cleaning: How to Clean Up Your Budget

October 3, 2023 | Leave a Comment

Most people think about clearing out their closets when “spring cleaning” comes to mind. While I suggest everybody do that a couple of times a year, your spring cleaning routine should also apply to your finances. Here are some ways that you can spruce up your budget this season.

Make Sure It’s Working

First and foremost, you need to make sure that your current budget is working for you. If it has been a while since you’ve done any financial spring cleaning, then it is likely you need to make some significant changes to your budget. You want to make sure it works for your current lifestyle. It also needs to help contribute to your larger financial goals – whatever they may be.

If your budget isn’t working for you anymore, don’t be afraid to scrap it and start from scratch! There is nothing better than a clean, blank slate to help you get back on track.

Consider Additional Budget Items

After you’ve considered whether or not your current budget is working for you, start thinking about things that you’d add to make your life easier. I know this isn’t necessarily what people think of when they think “spring cleaning.” Normally, you think about purging items from your home and decluttering. However, you should also consider what might make it easier to keep clean and organized throughout the rest of the year.

For instance, we added some organization products to our closet and it stays more tidy throughout the year. Similarly, with your budget, if you plan for things like vacation or allocate money to areas that make your life easier, it will work in your favor.

Get Rid of Things You Don’t Need

You shouldn’t only be adding things to your budget though. Just like cleaning out your closet, you need to get rid of things you don’t need too. Chances are, you probably don’t need all of those streaming services. You probably also don’t need a $6 coffee every single day. Look for areas where you might be able to cut/trim costs and make those changes.

Don’t Forget to Save

If you’re like me, you get a little too excited about that last step (getting rid of things). I’m addicted to throwing things out (seriously). Oftentimes, I’ll wind up tossing things I could have used or things I shouldn’t have thrown away at all. Saving is important too. It deserves a line on your budget.

Organize in a Way That Works for You

At the end of the day, your budget will look different than someone else’s. This is because it is designed to work for you. The same way you organize the pantry after cleaning it out applies to your finances. You want to make sure the things you use the most are accessible. More than that, you want to make sure it is functional. After a bit of financial spring cleaning, you should have a clear idea of your goals and budget.