Spring Cleaning For Your Finances

Just as spring brings renewal, it’s also an ideal time to “spring clean” your finances. By reviewing and refreshing your financial goals, you can set yourself up for greater success.

Here are key steps to help streamline your financial life and align your money habits with your goals.

Review Your Budget: This cannot be stressed enough. Budgeting is the foundation of financial wellness. Take time to:

• Analyze Spending Habits: Review recent bank and credit card statements to spot areas of overspending.
  
  
• Set Spending Limits: Adjust budget categories based on your priorities, like allocating funds for travel or emergencies.
  
  
• Automate Savings: Ensure consistent contributions to savings and retirement accounts.
  
  

Re-evaluate Your Financial Goals: Revisit your goals and ask:

• Are My Goals Relevant? Life changes may require adjustments.
  
  
• Am I On Track? Assess progress and make necessary changes.
  
  
• Set SMART Goals: Ensure your goals are specific, measurable, achievable, relevant and time-bound.
  
  

Simplify Accounts: Managing multiple accounts can be overwhelming. Simplify by:

• Consolidating Accounts: Reduce fees and make tracking easier.
  
  
• Streamlining Credit Cards: Keep cards that align with your spending habits and rewards.
  
  
• Organizing Investments: Consider consolidating accounts to simplify management.
  
  

Cancel Unused Subscriptions and Cut Expenses: Unused and unknown subscription services can drain your finances. Take time to:

• Audit Subscriptions: Cancel those you no longer use or forgot that you had.
  
  
• Negotiate Bills: Lower rates for cable, internet or phone services.
  
  
• Cut Back On Luxuries: Redirect funds to financial goals.
  
  

Strengthen Your Emergency Fund: An emergency fund provides peace of mind. Aim to:

• Set A Target Amount: Save three to six months of living expenses.
  
  
• Automate Contributions: Build your emergency fund consistently.
  
  
• Keep Money Accessible: Store cash reserves in a high-yield savings account.
  
  

Review Insurance Policies: Ensure your insurance coverage meets your needs. Consider:

• Life Insurance: Update beneficiaries and ensure adequate coverage.
  
  
• Health Insurance: Review your plan during open enrollment.
  
  
• Home and Auto Insurance: Compare rates and coverage options.
  
  

Improve Financial Literacy: Knowledge leads to better decisions. Take steps to:

• Read Financial Resources: Learn about saving, investing and planning.
  
  
• Attend Webinars: Gain actionable financial insights on various topics.
  
  
• Consult a Financial Advisor: Get personalized financial guidance.
  
  

Spring cleaning your finances can be as rewarding as decluttering your home. By reviewing your budget, refreshing goals, and streamlining your strategies, you’ll set yourself up for a more organized and prosperous year. Financial wellness is an ongoing journey, and each step brings you closer to your dreams.

Richard C. Osman (CFP, CLU, ChFC, CASL) is a CEO and financial advisor for Phronesis Wealth Management. The financial team at Phronesis Wealth Management in Severna Park is here to help you with your retirement goals. Call 410-647-6762 for more information or visit www.wearephronesis.com.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.