Spring Clean your Finances

Spring is an excellent time to clear your house of accumulated junk and make it sparkle. Why not do the same for your finances? Debris can get there, too. Some of your money matters may need a good wipe-down this season. Whatever your current situation, a thorough spring cleaning for your finances is a responsible move this time of year.

Here are some ways to spring-clean your finances:

Sweep out your budget

It's time to shake out the dust in your budget! Review your monthly spending and find ways to cut back. Have you been overdoing the takeout food this year? Buying up more shoes than you can wear? Pare down your budget until it looks neat and trim.

Freshen up your W-4

Tax season is prime time for revisiting the withholdings on your W-4. You may want to adjust your withholding amount if you received a substantial refund this year. The IRS's tax withholding estimator can be a valuable tool to help you determine the perfect number.

Deep clean your accounts. 

If you've switched from one bank or credit union to another, you may have dormant accounts that are still open and may be charging you fees. Or, perhaps they're holding onto the money you've forgotten you have! And remember the 401(k) you may have from an old job. Now may be the time to transfer those funds to your current 401(k).

This spring, do a Marie Kondo on your finances and get rid of any accounts you no longer need. A minimalist approach to your finances will make it easier to manage your accounts. It will also give your savings a greater chance at growth and help you avoid fees for unused funds.

Toss out your debt

Get ready to kick that debt for good!

If you've been stuck on the debt cycle for too long, make this spring the season you create a plan to break free.

First, trim your budget or consider a side hustle to earn pocket money, designating these extra funds for your debts. Next, choose a popular debt-busting approach, such as the avalanche method, in which you pay off debts in order from highest interest rate to lowest, or the snowball method, where you start with the smallest debt and then move up your list as each is paid off. Once you've chosen your approach, maximize payments to the first debt on your list, ensuring not to neglect the minimum monthly payments on your other debts. Before you know it, that debt will be gone!

Dust off your saving habits

Have you remembered to pay yourself first? Get into the habit of maximizing your savings this spring with a tangible financial goal. You can also make savings an itemized line in your budget. This way, you'll have funds aside for this purpose instead of savings only if money is left over at the end of the month. Finally, automate your savings by setting up a monthly transfer from your checking account to your savings account. Never forget to pay yourself first again!

Make your investments sparkle.

Whether you're an experienced investor or just getting your feet wet, it's time for a spring cleaning of your investments! Check if your allocation strategy is still serving you well, whether you need to adjust your diversification, and if your retirement accounts are on track for your estimated retirement timeline.

Spring is the perfect time to give your finances a thorough cleaning. Follow our tips to make your money matters shine!