As the flowers bloom and the days grow longer, spring is the perfect time to refresh and realign your financial plan and goals. Just like we declutter our homes and reorganize our spaces, our finances also deserve a seasonal check-in. By taking a few key steps now, you can ensure your money is working for you in the months ahead. Read on below for ways to Spring clean your finances and set yourself up for success!
1. Refresh Your Budget & Align Spending with Your Financial Plan
Your spending habits and financial goals may have shifted over the past year. Spring is a great time to review your budget and make necessary adjustments.
Steps to spring clean your financial plan:
- Track your expenses and identify areas where you can cut unnecessary spending.
- Update your savings goals to align with current priorities, such as a home purchase, vacation, or emergency fund.
- Automate your savings by setting up recurring transfers for consistency.
Pro Tip: Use budgeting tools like Mint, YNAB (You Need a Budget), or Personal Capital to track your finances effortlessly.
2. Maximize Retirement Contributions & Secure Your Future Financial Plan
Contributing to retirement accounts now means greater financial security later. Make sure you’re taking full advantage of available opportunities.
Retirement planning checklist:
- Increase 401(k) contributions to at least match employer benefits.
- Consider a Roth IRA for tax-free withdrawals in retirement.
- Review your investment strategy to ensure your retirement portfolio aligns with your risk tolerance.
A well-structured retirement plan is a long-term investment in your financial future.
3. Rebalance & Diversify Your Investment Portfolio
Market fluctuations can shift your asset allocation. A periodic review of your investments ensures your portfolio remains aligned with your financial objectives.
Investment strategies for a strong portfolio:
- Rebalance assets to maintain the right mix of stocks, bonds, and alternative investments.
- Diversify across industries to reduce risk exposure.
- Consider real assets like real estate, commodities, or inflation-protected securities for added stability.
If you’re unsure about your current portfolio, consult with a financial advisor to optimize your investment mix.
4. Optimize Your Tax Strategy After Filing Season
Tax season is behind you—now’s the time to prepare for next year. Being proactive can help you reduce your tax burden and maximize savings.
Smart tax moves to make now:
- Adjust your withholdings if you owed more than expected or received a large refund.
- Consider tax-loss harvesting to offset gains with losses and lower taxable income.
- Plan charitable contributions using strategies like Donor-Advised Funds (DAFs) for maximum tax benefits.
Thinking ahead ensures you’re not scrambling when tax season rolls around again.
5. Review Your Insurance & Estate Plan
Financial security isn’t just about growing wealth—it’s about protecting it.
What to review this spring:
- Life insurance coverage to ensure policies align with your current needs.
- Beneficiary designations on retirement accounts and insurance policies.
- Estate planning documents, including wills and trusts, to protect your loved ones.
Keeping these documents up to date is a crucial part of a comprehensive financial plan.
Start Your Financial Plan Spring Cleaning Today!
Spring is the perfect time to refresh, refocus, and take control of your finances. By optimizing your budget, investments, and tax strategy, you can ensure a stronger financial future for yourself and your family.
Need help getting started? PrairieView Wealth & Tax Advisors is here to guide you through your financial journey.
Schedule a consultation today!
