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Spring Cleaning Your Finances

Dawn Starks

Ah yes! Warmer day makes us think of springtime. The daffodils are blooming in our yard, bringing our thoughts to warm weather activities. I love to be outdoors, and while I really do enjoy certain aspects of winter, it is about now that I am ready for spring.

But springtime brings about another feeling in me – the need to clean. To tidy. To finish up. To renew. To tie up loose ends. And these feelings carry over into our financial lives, too. Here are some things you can do alongside your spring house cleaning this year, to improve your financial situation.

• De-clutter – Get going on those file drawers now, while old man winter still has us stuck indoors. You can still bring stuff that needs shredding to our office, but the deadline is March 15! Please limit your shred-worthy paper to documents that have personal information on them, and sort out that which can be safely recycled or trashed. (We pay by the pound!)
  
• Organize – Set up a better filing system, if your old system has not been working. How do you know if it isn’t working? Do you pile up paper in a “to be filed” pile or file? If so, then your filing system may be too complicated, causing you to avoid the actual work of filing. The best system for handling paper, in my opinion, is to keep it from actually being generated in the first place. Before you print, ask yourself, “do I REALLY need to print this? Where will it end up? In my ‘to be filed’ pile?” What sources of mail can you eliminate?
  
• Vacuum those closets. What stuff do you have in there that you no longer use? Could these items be put to good use by someone else? Gather up items that are worthy of donation, and drop them off at your favorite charity. Don’t forget to ask for a receipt if you itemize your deductions on your taxes. Also, consider using the program “It’s Deductible” to help you determine the value of the items you are donating. This is a tremendously helpful software program for organizing your donations.
  
• Dust off those binders of account statements. Do you still have accounts in various places? Would it be better to consolidate them into your Raymond James accounts? This can help you stay better organized with your investment accounts, and it cuts down on the paper that enters your home also.
  
• Wash the Windows of your financial plan. Clean windows help us have a good view of our surroundings. A clean financial plan helps us have a good view of our future. What parts of your financial life have changed over the past year? Is it time to update retirement projections or other parts of your financial plan?
  
• Air the Linens – Perhaps your financial goals need a fresh approach. While you air your linens this spring, think about the financial goals that you have had over the past few years. Are they still valid? Which goals have become stale or irrelevant? What goals have sprung up recently, like the daffodils? Perhaps you also need to air your goals with other family members. Determine that everyone in the household is on the same wavelength when it comes to financial goals, and you will avoid misunderstandings later.
  
• Fertilize the Garden – Once you have a handle on your goals for the rest of this year, what do you need to invest to make them grow? Do you need to set up a regular investment plan so that money comes out of your paycheck or bank account monthly? Do you need to plant the seeds of an emergency cash cushion? Decide today how much you should set aside monthly to make your goals bear fruit.
  
• Clean the Gutters of your insurance planning. Like your gutters need regular maintenance and review to make sure they are functioning properly, your insurance coverage needs regular review to make sure it is adequate and appropriate for your needs. After reviewing your financial planning and goals above, determine if you have adequate insurance, or perhaps you have insurance coverage that is no longer needed.
  
• Scour your consumer debts. Check to make sure you are paying the lowest interest rate possible on your credit card balances. Many cards offer introductory rates that will end after several months. Make sure you have not missed these deadlines, and if you find some high rate cards, seek out a lower rate card. While you are scrubbing your debts clean, also remember to pay the bills on time, and pay more than the minimum. If you are actively trying to reduce credit card balances, start with the highest rate card and pay all extra principal each month to that one card, while paying only minimums on the others. This will accelerate the pay-off of your debts.