Spring Cleaning Your Finances: Tips to Refresh and Reorganize

As the weather warms up and flowers begin to bloom, it's not just your home that could use a little sprucing up—your finances could benefit from a thorough cleaning too! Just as you clear out clutter from your closets and dust off forgotten corners, taking the time to tidy up your financial house can leave you feeling refreshed and rejuvenated. Here are some tips to help you clean up your accounts, declutter your debt, and organize your financial life this spring.

Organize Your Financial Documents

Gather all your financial documents, including bank statements, tax returns, insurance policies, and investment statements. Use a scanner to digitize as many documents as possible – digital files are easier to organize, sort, and search, making it easier to quickly find what you need. If you're still receiving paper statements, switch to paperless options to reduce clutter and protect your personal information. Remember to back up your digital files and shred any documents you no longer need to avoid identity theft.

For the physical documents you do keep, invest in a fire-proof safe for home storage or rent a safe deposit box at your bank. Examples of such documents include:

• Birth and death certificates, marriage license, divorce/separation paperwork, adoption paperwork
• Military papers
• Mortgage paperwork and home improvement receipts
• Social security card, green card, and passport
• Vehicle title, registration, and loan paperwork
• Will and living will

Clean Up Your Accounts

Do you find it challenging to keep track of your various financial accounts? Consider consolidating your accounts to gain a clearer understanding of your financial streams and overall net worth. Alternatively, if you prefer to maintain accounts with different banks, take advantage of digital tools that let you see all of your accounts in one place. Getting that full picture can bring a fresh perspective about what you need to prioritize as you manage day-to-day cash needs and pursue your long-term financial goals.

Take advantage of your bank’s online statements and bill pay services, along with electronic billing to replace any paper bills you receive. This will reduce your paper clutter, make it easier to ensure your bills are paid on time, and will help you protect your identity.

Declutter Your Debt

Do you ever feel like your debt is in disarray? If you have multiple loans and credit cards with different interest rates and payment dates, it might be time to consider debt consolidation. Paying off your various debts via a single loan with a competitive interest rate not only helps you save money, it also leaves you with one simple payment date each month, reducing financial stress. If you're considering this option, set aside some time to review your repayment plans or work with a banker to figure out the next steps.

One consolidation option is to use a balance transfer credit card. A balance transfer can help you save on interest charges by transferring high-interest credit card debt to a credit card with a lower rate, or even one that has an introductory 0% APR, allowing you to pay down your debit without incurring interest charges. If you choose this option, be sure you can pay off your balance in the time allowed, otherwise you might incur additional charges and fees.

Review Your Income and Expenses/Refresh Your Budget

After your accounts are in order, take inventory of your monthly finances and make adjustments to your budget if necessary. Review your long-term financial goals (like saving enough to buy a house, or enough to retire by a certain age) and consider whether your goals are still relevant and align with your plans. If necessary, adjust your goals to reflect changes in your financial situation or your priorities. Celebrate your achievements, and don’t hesitate to seek guidance if you need assistance.

Note: As you review your budget, try to anticipate any irregular expenses you might incur this year and include them in your budget. This can help you avoid stress when unexpected expenses arise.

Review Bills to See Where You Can Save

Review your monthly spending to identify areas where you can save money. Make note of any subscriptions or membership you no longer use and consider canceling them. Check to see if bundling subscription services might save you money. Cutting back on unnecessary expenses can help free up funds for other financial priorities.

Set or Revisit Your Savings Goals

Identify clear and realistic savings goals to maximize your savings efforts. Determine how much money you need to set aside each month to achieve your goals and factor it into your budget. Setting up an automatic savings plan is an easy way to build a financial cushion without having to think about it. You can allocate a certain amount from your direct deposit into a savings account or set up an automatic transfers to help you reach your goals.

Use Your Gift Cards

Clear out any clutter from your wallet and avoid fees by using your gift cards. (Gift card issuers can charge monthly fees after one year.) Along the same lines —

Use Your Cashback Rewards

Take advantage of your cashback rewards by ensuring you’re enrolled in programs offered with your credit or debit card(s) and apply any unused funds before they expire.

Request a Free Credit Report

You have the right to one free credit report a year, and with sites like AnnualCreditReport.com, you can often review your credit report online for free more frequently. Looking for errors on your credit report not only ensures your identity is protected but can also help you save in the long run: If an error is negatively impacting your credit score, you might be getting charged higher interest rates on loans and credit cards than you should be. Look for mistakes like:

• Identity errors, such as an incorrect name or address
• Incorrect reporting of your account status, such as an account incorrectly labeled as delinquent
• Data management errors, including accounts listed multiple times with different creditors
• Balance errors

Taking the time to correct these mistakes can save you money, and you’ll be prepared if you need to apply for credit anytime soon.

Plan Ahead for Taxes

As you prepare to file your 2023 tax return, make notes for any changes to lessen your tax burden in 2024. Changes you might make include:

• Adjusting your tax withholding. If you withhold too much, you give Uncle Sam an interest-free loan. Withhold too little, and you get hit with a tax bill. Aim for a $0 tax bill, which might require adjusting your payroll withholding. A consultation with a tax professional might be helpful.
• Review your retirement contributions. First and foremost, make sure you’re taking advantage of any matching funds your employer might offer. Then ensure you’re on track to achieve your retirement goals and make any necessary adjustments to your contributions. Don’t hesitate to contact a tax professional or financial advisor for help with these decisions.

Review Your Insurance Coverage

Take a look at your insurance policies to determine if they still meet your needs. Adjust your coverage as necessary, and explore options for saving money such as bundling different types of insurance, like home and auto, with the same provider. (Bundling can qualify you for discounts and reduce your overall insurance costs.) Discuss your policies with an insurance professional and talk to your HR Department about any policies provided by your employer.

Invest in Home Improvement Projects

Sometimes you have to spend money to save money. For example, if your winter bills were higher than past years, it might be time to invest in things like new windows, roofing, or insulation. If your air conditioning unit makes a strange noise when it kicks on, it might be time for maintenance or a replacement. These updates can put equity in your home that will play to your advantage if you decide to sell, and perhaps help you avoid an unexpected maintenance or replacement bill down the line.

Literally Clean Out Your Old Stuff

As you're decluttering and cleaning your home, keep in mind you can earn extra cash by selling items you no longer need or use. Sort through your belongings and set aside items to sell, donate, or discard. Not only will you have a more organized/less stress-filled living space, but you might have a few extra bucks to boot!

While this list might seem overwhelming, once you get started, you'll be surprised at how easy it is to keep going. And if you need any guidance, let us know. 

The views, information, or opinions expressed in this article are solely those of the author and do not necessarily represent the views of Citizens State Bank and its affiliates, and Citizens State Bank is not responsible for and does not verify the accuracy of any information contained in this article or items hyperlinked within. This is for informational purposes and is no way intended to provide legal advice.