A fresh start.
At its core, that is what spring is all about. And that's an excellent opportunity to spruce things up when it comes to your finances. So, as you embark on your spring cleaning this year, don't forget to include those finances.
Here are six items that could fit nicely into your plans to do a little financial housekeeping and review, refresh and clean up your personal finances:
1. Review Your Allotments and Systematic Investments
I'm a huge fan of paying yourself first -- in other words, making payroll-deducted investments into your Thrift Savings Plan (TSP), savings account, IRA or other investment accounts. Saving and investing "the first dollar in" works, especially because most of us have little left over at the end of the month.
And you may be able to do more, depending on whether you've gotten a pay raise or a promotion since you last adjusted your systematic savings. Take a fresh look with an eye on bumping up what you're doing. Contribution limits to IRAs and retirement plans have continued to increase, but have your actual contributions?
2. Do a 360-Degree Inspection of Your Insurance
When was the last time you took a comprehensive look at your insurance coverage? If you've moved, bought a house or had a child, and if your coverage doesn't reflect those life changes -- or other big ones -- now is the time to get things squared away.
3. Revisit Your Financial Goals
Too many folks I talk to don't have any specific financial or savings goals. Yes, they have good general ideas ("pay down debt," "save money") but have failed to dig into the details. It's hard to be accountable or hold each other accountable if the things you would like to achieve are just vague concepts.
If that's you, sit down with your spouse and map out your short-, medium- and long-term financial goals. Use the SMART goals framework: specific, measurable, achievable, relevant, and time-based.
4. Dust Off Your Spending Plan
If you're struggling to find money to save, invest, pay down debt or fund your fun, take a close look at your budget. Tracking your expenditures for 30-60 days this spring may be enough time to identify opportunities to cut back. In other words, you might be in sync with the season and find a little of your own green.
5. Review Your Credit Reports
Last year, my daughter and her new husband asked me to sit down with them and review their credit reports. In my line of work, this warmed my heart, but it also reminded me of how it's important to periodically ensure that the data the credit bureaus have associated with you is actually yours. Is the data that is used to generate your score accurate? Better to find an error during a little spring cleaning than after you've applied for credit. Visit www.annualcreditreport.com for your free report.
6. Generate Some Income
Turn your traditional spring cleaning into a revenue generator. As you're sifting through the piles of unused stuff at your house, think "sale." Whether you go the garage-sale route or use one of the many apps designed to help people unload their unwanted stuff, don't miss out on the chance to create this win-win: Declutter your home and bulk up your savings.
This spring, clean up more than your garage with a focused effort to fine-tune your finances.
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