Have your New Year’s money resolutions already fallen flat? You’re not alone. It can be challenging to maintain the New Year momentum throughout the often dreary months of winter. But winter is coming to an end and before we know it the sun will be shining bright and the birds will be chirping. While we’re in the season of fresh beginnings, why not reboot those financial resolutions? Here are five financial spring cleaning tips that you can get started on right now.
1) Take stock of where you stand financially. It can be hard to make an action plan if you don’t even know where you stand. Take some time this spring to assess your current financial position. Make a list of your assets (like savings accounts, stocks, and real estate) and liabilities (such as credit card debt). Once you see everything in front of you, it will be easier to make informed decisions moving forward.
2) Set realistic goals for yourself. Once you have a grasp on where you stand financially, it’s time to set yourself some achievable goals for the upcoming months. Whether those involve getting out of debt, saving up for a down payment for a house, opening a savings account to send your kids to college, or putting aside funds for retirement, make sure these goals are SMART (Specific, Measurable, Attainable, Relevant and Time-bound). Write them down somewhere visible so that when times get tough, they can serve as motivation. Use this Money Quotient goal-setting template to get started.
3) Automate your savings habit. One of the best things about automating your savings is that once it’s set up, it takes no effort on your part at all! You decide how much money gets transferred into a separate account each month and then watch the funds add up without having to think twice about it.
4) Create a budget and stick with it! Having written goals is great but having a plan on how exactly you’re going to meet them is even better. Luckily, modern technology has made it easy to track your spending habits and streamline your expenses. Create a budget based on your income and your monthly expenses and stick with it religiously in order to meet those financial goals.
5) Revisit insurance policies & investments. Insurance policies aren’t one size fits all, which means that what worked for you six months ago won’t necessarily work for you today. Conduct regular check-ins with yourself or with an advisor in order to ensure that your insurance coverage and investments align with both your present and your future needs.
As much as we love tulips and daffodils, springtime is about so much more than budding flowers; this season can also symbolize new beginnings across all areas of life, financial included! If kicking off 2023 wasn’t quite what you expected when it came to achieving those financial goals, now’s the perfect time for some much-needed financial spring cleaning. By taking stock of where you stand financially, setting realistic goals, automating your savings habits, creating a budget, and revisiting your insurance policies and investments, you can get back on track toward making 2023 a financially successful year.
At The Humphreys Group, we believe that revisiting your priorities and financial goals can give shape to actions, and ultimately help provide long-term calm and security in your life. Contact us today to learn how you can give life to your goals with a well-prepared financial strategy.