Give Your Finances a Spring Cleaning
Sure, Punxsutawney Phil saw his shadow at the beginning of February, predicting six more weeks of winter. It's now March, though, and spring is upon us. While some use the New Year as a new beginning, I think Spring brings a new beginning. The nights get shorter and the days warmer. This means we have more sunlight and Vitamin D to power the task I am about to give you.
As a financial advisor who just navigated a home sale/purchase and tax preparation, I've thought a lot about financial spring cleaning. Like decluttering your home, organizing your financial life can bring clarity, reduce stress, and set you up for success. With tax season upon us and spring around the corner, now is the perfect time to refresh your financial habits.
What you should start doing:
Create a Financial Inventory
One of the most valuable exercises I recently completed was creating a comprehensive inventory of all my accounts, investments, and insurance policies. This bird's-eye view gave me much better clarity on my overall financial picture. What surprised me most was realizing just how many different accounts, websites, and services require contact information updates when life changes occur. A simple spreadsheet tracking all these accounts has been incredibly helpful for staying organized. Set aside an afternoon to list everything: checking and savings accounts, investment accounts, retirement funds, credit cards, loans, insurance policies, and estate documents. This clarity alone can be transformative.
Update Your Budget
When I sold my previous home and purchased a new one, my monthly expenses shifted significantly. In my practice, whenever we onboard new clients, one of our first questions is about monthly expenses — and I've found that remarkably few people have a true grasp on what they're actually spending.
The good news is you don't need to track every coffee purchase to gain valuable insights. Looking at your overall outflows over a six-month period can give you a reliable average. If that number feels comfortable relative to your income and savings goals, you may not need to dig deeper. However, if the total surprises you or feels unsustainable, that's when breaking down expenses by category becomes crucial for identifying potential adjustments.
Set New Financial Goals
Yes, even with the New Year behind us, you can still set new goals. Fresh goals create momentum. After reviewing my finances, I realized I needed to adjust how I fund my 401(k) throughout the year. Rather than maxing it out early, spreading contributions more evenly helps me maintain a consistent cash flow and maintain more consistent income to cover my increase in home-related expenses. Consider what milestones matter most in your next chapter: Is it building an emergency fund, saving for education, optimizing retirement contributions, or planning for a major purchase? Write these goals down with specific numbers and timelines to make them concrete.
What you should stop doing:
Stop Overlooking Account Management
During my recent move, I was struck by how challenging it can be to keep track of all the accounts and services that need updating when circumstances change. It's not just about outdated information — it's about the mental load of managing dozens of financial touchpoints. Consider consolidating accounts where possible and using a password manager with secure notes to track all your financial relationships in one place. A well-organized system saves time and prevents essential details from falling through the cracks.
Stop Procrastinating on Financial Tasks
I'm guilty of this one. For months, I put off systematically reviewing my accounts and financial strategy. These seemingly small administrative tasks can have major consequences if neglected. Schedule a dedicated "financial admin day" to knock out those lingering tasks: updating your will, reviewing insurance coverage, organizing tax documents, or optimizing your retirement contribution strategy.
Stop Inefficient Savings Habits
While preparing my taxes, I realized my approach to retirement savings wasn't optimized for my situation. By front-loading my 401(k) contributions early in the year, I was creating unnecessary cash flow challenges. Sure, it's nice to get an increase around the holidays. My goal today is balance in my family and finances, not buying gifts around the holidays. Look for these kinds of inefficiencies in your financial habits—sometimes, even well-intentioned savings strategies can be refined for better results.
What to continue doing:
Continue Saving and Investing
Market fluctuations are inevitable, but consistency remains the cornerstone of financial success. Despite the stress of home buying and market volatility, I maintained my regular investment schedule — something I'm now grateful for. Automated contributions to retirement accounts, investment portfolios, and savings goals remove the emotional decision-making that often derails long-term plans. Maintain (or increase) these habits, regardless of market conditions.
Continue Monitoring Your Credit
I check my credit report quarterly, which proved invaluable during my recent mortgage application process. Regular monitoring allows you to catch errors early, identify potential fraud, and understand how your financial behaviors impact your creditworthiness. Many credit card companies now offer free credit monitoring — take advantage of these tools to maintain financial security. If you aren’t planning to make any purchases soon that require your credit to be run, the best bet is to lock your credit with the agencies.
Continue Reviewing Your Financial Plan
Life changes and your financial plan should evolve accordingly. My recent home purchase triggered a comprehensive review of my retirement projections, contribution strategies, and estate plan. Schedule quarterly check-ins with yourself (or your financial advisor) to ensure your financial strategy still aligns with your life circumstances and long-term vision.
Closing remarks
Financial spring cleaning isn't just about organization, it's about intentionality. Each decision to start, stop, or continue a financial habit shapes your future options and opportunities. As I've experienced firsthand this year, even small adjustments like optimizing retirement contributions and creating better systems for account management can dramatically improve your financial clarity and confidence. In the end, this protects you and your family.
What financial habits will you start, stop, or continue this spring?
Do you need help with your financial spring cleaning? Do you know someone who does? Come see us or share our name. We’d be happy to dust things off with our financial brooms.
~ Quentin Bubb
The information provided in this blog is for general informational purposes only and is not intended to be specific financial, investment, or tax advice. Please consult with a qualified financial advisor to address your unique situation.