How To Spring Clean For A Better Financial Life

1.) Organize Your Documents & Accounts

Have piles of statements or documents piling up? Go through them and decide: Can I set up paperless statements or billing to reduce the clutter? Do I actually need to keep this? If so, back it up digitally and file it away. Shred everything else.

Next, review your accounts. Do you have bank, credit, or other accounts you haven’t used in months? If you’re paying fees for those, consider closing them (if doing so wouldn’t ding your credit score).

2.) Review Your Beneficiaries

We recommend reviewing your beneficiaries and estate documents regularly so that you can make sure the people, trusts, and institutions you have listed still represent your wishes.

If you don’t already, we strongly recommend naming a second or contingent beneficiary or representative in case the primary is unable to step in or inherit assets.

3.) Update Your Subscriptions

Digital clutter can be just as stressful as physical clutter. And our inboxes are usually ground zero for the digital clutter we have to face daily.²

If your inbox is overflowing, identify any listserv, subscription, or promotional messages you haven’t opened in a couple of months and unsubscribe from them. (Tip: search for “unsubscribe” to identify promotional messages.) As you do this, organize and/or archive any emails you need to save.

Also, take a look at your other subscriptions. Review the ones you have for software, magazines, memberships, or other items. Cancel the ones you don’t need or use.

4.) Go Over Your Insurance Policies

When’s the last time you reviewed your policies?

Life, health, and disability policies often get regular attention, but your auto, homeowner’s, and other policies need review as well. For example, are you driving as much this year? If not, you might qualify for a better rate on your auto policy. Make some big purchases or upgrades? You’ll want to update your personal property inventory and maybe review your homeowner’s coverage.

5.) Reconsider Your Tax Withholdings

Don’t let the wrong withholding give Uncle Sam a free loan or set you up for a surprise tax bill! Take a fresh look at your withholdings, and think about changes in your family, income, and/or assets over the past year.

Also, consider any changes you may be planning in these areas this year. All of these can be good reasons to update your tax withholdings.

6.) Automate Your Savings

Haven’t reviewed your savings in a while? Now’s the time. When you have subscriptions that are auto-drafted, it’s easy to forget about them and spend more than you intended. On the flip side, automatic deposits into your savings make it easy to save more with less effort.

Explore the options available from your financial institution. Transfers can be set aside from direct deposits or as recurring events at any frequency. You can even set up round-up deposits, so you are contributing to your savings with every purchase you make.

As you consider the options, think about what you need to put away for future plans, upcoming tax bills, and the unexpected rainy days.

7.) Check in on Your Financial Goals

Financial spring cleaning isn’t just about removing clutter and setting up systems. It’s also about restoring clarity and reconnecting with the purpose of your financial life.

Take some time to revisit and reflect your financial goals and how they connect to your values. Are you still working toward the same dreams? Do you need to update them or add new ones?

Be sure to celebrate your progress!