It’s time to Spring clean your finances!
Even though spring in Ohio often brings wild temperature swings—and more than its fair share of rain and mud—it’s still a breath of fresh air because it means winter is finally behind us! There’s just something about the warmer weather that inspires us to throw open the windows and dive into some spring cleaning.
And while we’re refreshing our homes, why not spring clean our finances too?
Just like a cluttered closet can slow you down, neglected money matters can trip up your financial goals. Taking time once a year to review your financial health can help you stay on track and be better prepared for whatever life throws your way.
I went on Heartfelt Radio to share six smart ways to spring clean your finances. You can listen to that here, and there are more details below!
Check Your Tax Withholdings
With tax season behind us, now is the perfect time to make sure your withholdings are set correctly.
If you received a large refund or owed a big tax bill, that’s a clue that your current withholdings may need adjusting. Ideally, you want to come as close to breaking even as possible—avoiding both giving the IRS an interest-free loan and facing a surprise bill next April.
If you worked with a tax professional, they can help you fine-tune your withholdings. If you filed yourself, check out the IRS’s free Tax Withholding Estimator.
Once you know your target amount, fill out a new W-4 form and submit it to your employer.
Consolidate Old Employer Plans
If you’ve changed jobs and left a 401(k) behind, it might be time to roll it over into an IRA.
Old employer plans often get neglected—you may not be monitoring the investments, rebalancing appropriately, or you might be stuck with limited (and possibly expensive) fund choices. Especially given recent market volatility, it’s crucial to make sure your investments still align with your goals and risk tolerance.
Rolling old plans into an IRA can simplify your finances and give you more control over your investment options.
Review Your Life Insurance
Life insurance is easy to set and forget, but it’s important to review your coverage regularly.
A common guideline is to carry 10–12 times your income in term life insurance. But the amount and length of coverage should reflect your personal situation, especially how long others will rely on your income (often until children graduate from college or become financially independent).
Take a few minutes to review your policies and ensure they still meet your family’s needs.
Dust Off the Estate Plan
Do you have an estate plan? If not, now’s the time to create one.
A will or trust provides clear instructions for your loved ones, helping to avoid confusion and conflict during a difficult time. An updated estate plan is one of the most essential final gifts you can leave to your family.
If you already have an estate plan, review it carefully. Major life changes—like marriage, divorce, having children, or kids becoming adults—may mean it’s time for an update.
Calculate Your Net Worth
Tracking your net worth is one of the simplest yet most powerful financial habits you can build.
Your net worth is simply what you own minus what you owe—or, more formally, your assets minus your liabilities.
You can track it easily in a spreadsheet or by using tools like the Ramsey Solutions Net Worth Calculator.
If you’re already a client, we’ll review this during your financial planning sessions. If you’re not yet working with me, I’d love to help you get a clear picture of your net worth and create a plan for achieving your financial goals, especially answering the big question: “Will I be okay in retirement?”
Create a Summer Spending Plan
Summer is right around the corner, bringing vacations, weekends at the lake, concerts, fairs, and—if you’re anything like our family—plenty of trips to the local ice cream shop!
It’s a season for fun and relaxation, but that can also lead to relaxed money habits, too.
Setting a Summer budget now ensures you can enjoy everything the season has to offer without sacrificing your larger financial goals.
Plan ahead for travel, activities, and spontaneous adventures, so you can have peace of mind all summer long.
Why Spring Cleaning Your Finances Matters
Setting aside time to review your finances at least once a year is essential to keeping your financial life healthy and aligned with your goals. While budgeting should happen more regularly, it’s easy to overlook the fact that as life evolves, so do your financial needs.
Another often-overlooked area is insurance. If you haven’t reviewed the replacement value of your home or checked your home & auto liability limits lately, now is a good time. Ensuring your coverage keeps up with changing property values and personal risks is key to protecting what you’ve worked so hard for. Consider speaking with an independent insurance agent who can help you determine if your coverage is still suitable.
If you have any questions about your financial picture—or would like personalized recommendations—I’d love to meet with you.
Let’s make sure your finances are as fresh and ready for the year as your spring-cleaned home!
This post is meant for educational purposes only and is not intended to provide tax, legal, or specific financial advice. Please consult the appropriate professional to discuss your specific situation.
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