Spring Cleaning Your Finances – It’s Not Too Late

By Hanna Kaufman

With summer right around the corner, our finances are not likely at the top of our to-do list, but maybe they should be. Once summer sets in you’ll want to spend your free time lounging at the beach, or in the backyard grilling with the family- not worrying about your investment accounts or insurance coverage. Now is the time to get our finances squared away so we have more time to focus on more important matters; like fun summer activities. Check out this list of seven things you can do to jump-start the process of spring cleaning your finances this spring:


1. Clean Up Your Accounts

If you have any duplicate accounts, now is the time to consolidate and have them transferred to one platform. By consolidating accounts, you provide a clear and complete picture of the assets you hold. This creates a comprehensive view of your wealth that will help you meet your short- and long-term goals. Also, by limiting the number of accounts and platforms you utilize, the more opportunity you have to decrease your overall fees.


2. Update/ Create Your Budget

Spending tends to increase at the same rate as summer excitement. With fun summer activities around the corner, those activity expenses are likely to add up. Have you begun saving for these exciting adventures? If not, now’s the time to start thinking about allocating your funds to your summer goals so you can worry less while having fun.


3. Sort and Shred Your Unnecessary Documents

This tackles spring cleaning in both your personal and financial lives. This might include old tax documents, outdated estate planning documents, or just bills floating around. If you’re unsure what documents to keep, take a look at these general guidelines:

  • Hold on to bank statements for one year
  • You should keep tax returns (and supporting documents) for 7 years
  • Keep any documents that support insurance claims or current insurance policies

Bonus Tip: Consider going electronic- going paperless has many more benefits than just reducing the amount of paper in your mailbox; it provides flexibility to access documents anywhere, consolidates the location of your documents, and it declutters your home.


4. Check Your Allocation

Review your investment accounts, have you updated your allocation as your needs change? Does your current asset allocation align with your risk tolerance? Are you properly diversified? Are you prepared to meet your short- and long-term goals?


5. Check Your Coverage

Take inventory of your insurance coverage. Your life is ever changing, and your insurance needs are too. It’s likely that your coverage needs to be updated to meet your needs. This might include making sure your liability limits are set appropriately or adding/increasing an umbrella policy as your wealth increases. Meet with your financial advisor or speak to an insurance professional if you need help determining your coverage needs. While it may seem tedious, it’s important to know that you and your family are fully protected.


6. Bank Check 

Are you happy with your current financial institution? Is it easily accessible? Does it have the tools you need to succeed? What are the fees? These are all important questions to ask yourself when evaluating your current bank.


7. Start New 

A new season is right around the corner and along with that is a new opportunity to start fresh. What better time to develop new habits and get off to a healthy start in your financial life? Start by setting goals and finding ways to achieve them throughout the summer and beyond.


This time of year, is about growth and rejuvenation, why not start with your financial clean up. Putting the time in now will put your mind at ease for summer fun.