Finance Spring Cleaning: Tips for Financial Well-being

Taking time to clean your finances now will help you make more well-informed financial decisions for the future

Spring is celebrated as a time for new growth. The flowers are starting to bloom after being awoken from the cold of winter and the sun is finally out and shining. Spring is also a popular time to bring that new air inside and tidy up those boxes in storage, that old room in the attic, or even your car. But why stop there? Why not plan to invest time in spring cleaning your finances?

Along with physical, emotional, and social well-being, financial well-being is another integral part of wellness. Taking time to clean out your finances now will help you make more well-informed financial decisions for the future. Here are a few tips from the Idaho Central Credit Union to help get you started.

1. Know Where You Stand 
If you don’t know where you stand with your money, you won’t be able to accurately measure your progress. From rate changes to market fluctuations, there are many factors that can affect your money and finance. If you haven’t been paying attention to your finance situation, you might be surprised to see how things have changed. Don’t be caught off guard and don’t let your finances dwindle from carelessness. Knowing where you stand financially is the key to keeping you in good finance order.

2. Set Realistic Goals 
Being optimistic with your money goals is great, but you also need to be realistic. Creating monumental, life changing goals is a practice many people seem to abide by with each new year. Yet most do not stick with their goal for more than a few months. Instead of trying to make major progress with your finance goals quickly, create a long-term plan you can stick to. Accomplishing small goals will give you the courage and determination to continue striving for success.

3. Fill Out a Monthly Budget 
Renew the budget and start planning. A budget is one of the best tools we have to help us reach our finance goals. Following a budget and cutting out unnecessary spending will help you reach all of your financial goals, whether that means paying off debt or saving to buy a new house. Above all, it will help eliminate preventable financial stress. Instead of thinking of sacrificing, think in terms of prioritizing. Create a budget that is based on living the life that’s important to you. This means putting all your expenses under a microscope to know how to afford the necessary and important items in your life.

4. Sell Unwanted Possessions 
Stop shuffling and start decluttering! Selling your unwanted items allows you a chance to recover some of the money you spent on the item and gives perspective on how much money you may have lost by purchasing the item. This will help you understand your spending habits and become more intentional going forward. If you aren’t able to sell items, donate them to a charitable organization. If you do donate, don’t forget to ask for a donation receipt to claim tax deductions for charitable giving!

5. Set Financial Goals for the Year 
Toss out the debt and plan for the future. It’s important to take time to plan for your financial future so you can focus on being debt-free, saving for retirement, buying your first home, or accomplishing any other major financial goal you want to. A finance plan will help you reach these goals. Remember, a goal without a plan is just a dream!