Money Makeover: Freshen Up Your Finances for Spring
Spring is here! Birds are singing, flowers are blooming, and somewhere out there, your junk drawer is plotting its next hostile takeover. But before you get too distracted by the great outdoors, it’s a perfect time to give your financial plans a good spring cleaning. Not just the attic and garage—your money deserves some freshening up, too!
Here are some quick, actionable tips to help you tidy up your finances and keep them in top shape for the year ahead:
1. Reassess Your Financial Goals
Take stock of your short- and long-term goals—whether that’s retirement plans, major purchases, or finally saving up for that midlife crisis sports car you’ve been eyeing. Are your goals still aligned with your priorities, or is it time to give them a little dusting off and a refresh?
2. Organize Your Accounts
Got retirement accounts scattered around like the socks that mysteriously vanish from your dryer? Time to round them up! Consolidating old accounts can simplify management and even reduce fees. And if you’ve had a major life change recently, double-check that your beneficiaries are up to date. You don’t want your old college roommate Ralph ending up as your 401(k) beneficiary by mistake.
3. Review Your Spending Plan
Spring cleaning isn’t just for your closets—it’s for your finances, too! Comb through recent bank and credit card statements to find recurring charges or subscriptions you no longer need. It’s like decluttering your house, except the stuff you’re getting rid of is the digital equivalent of a broken toaster you’ve been holding onto for no reason.
4. Rebalance Your Portfolio
Just like you wouldn’t let a garden grow wild without pruning, don’t let your portfolio get out of control. Review your investment allocations in relation to your current risk tolerance and goals. If things look overgrown, it might be time for some trimming and shaping. And if you want to make adjustments, reach out—we’re here to help!
5. Streamline Debt Management
High-interest debt can feel like a bad haircut—it starts small, but left unchecked, it just keeps getting worse. Consider consolidating or refinancing to snag lower rates, and create a strategy to pay down those balances faster. Prioritizing the highest interest rates is like tackling your most annoying tasks first—it makes everything else seem easier by comparison.
6. Boost Your Emergency Fund
April showers bring May flowers...and sometimes unexpected expenses. Aim to have three to six months’ worth of expenses stashed in an easily accessible account. If yours needs a boost, set a small monthly savings goal to help it grow. Think of it like planting seeds in a garden—steady, consistent care brings results.
7. Evaluate Tax Strategies
Before the April 15 tax deadline, take a look at tax-advantaged accounts like IRAs or HSAs to make sure you’re maxing out contributions for 2024. Remember, the IRA contribution limits for 2024 are $7,000 for those under age 50 and $8,000 for those age 50 or older. For HSAs, you can contribute up to $4,150 as an individual or $8,300 as a family. It’s like gathering all the loose coins hiding in your couch cushions—every little bit helps!
8. Protect Your Digital Assets
Update your passwords for online banking and investment accounts, and activate two-factor authentication wherever you can. If identity theft is a burglar trying to break into your house, two-factor authentication is the digital equivalent of setting up a home security system with laser beams and guard dogs.
If you’d like to chat about any of these tips in more detail, or if you want help customizing your spring cleaning plan to fit your specific goals, feel free to reach out. We’re here to help however we can—whether it’s sprucing up your investments or making sure your financial junk drawer doesn’t take over your life.
Happy Spring Cleaning!
