ARI BAUM, CFP®

WHEN WAS THE LAST TIME YOU SPRING CLEANED YOUR HOUSE? MANY OF US DO SOME FORM OF SPRING CLEANING IN OUR HOMES REGULARLY. BUT WHAT ABOUT OUR FINANCIAL “HOMES?”

It can be easy to forget about the clutter and red tape that builds up in our finances. When we do, we can end up with some serious clutter, and that can have very real consequences. In fact, it won’t just take up space, clutter can also waste our energy, time, and even money. So, how can we deal with the financial clutter, so it doesn’t get in our way?

SIX SIMPLE & PAINLESS FINANCIAL SPRING-CLEANING TIPS. TO ORGANIZE YOUR FINANCIAL HOUSE

#1 Purge The Paper

Go paperless for recurring bills and monthly financial statements. Also, go through the financial documents you have on hand and shred the old paperwork you don’t need any more. If there are papers you need to keep, make a digital version by scanning them. If you’re not sure what you need to keep, consult with your financial professional to make the decision.

Pro Tip: If you have a lot of paper, let technology help you out! Apps can help you digitize and organize your paper records. Also, visit optoutprescreen.com to stop getting irritating mail solicitations, like credit card applications and loan pre-approvals.

#2 Audit Your Subscriptions

Review all of your subscriptions and cancel any you no longer use or need, including subscriptions for streaming services, software, magazines, newspapers, gaming, and even product deliveries.

Pro Tip: Use your credit card and bank statements to figure out all of your subscriptions, so you don’t overlook any. Also, consider signing up for subscriptions using the same card, so it’s easier to audit them in the future.

#3 Consolidate Accounts

How many bank accounts, retirement accounts, and brokerage accounts do you have? Are they at different financial institutions? This type of account sprawl can get complicated fast. It can also mean paying lots of maintenance fees. Take a careful look at your accounts and try to consolidate them. Look at both reducing the number of accounts you have and consolidating your accounts at fewer institutions.

Pro Tip: Check out account fees and requirements as you decide which ones to keep and which to shut down. And don’t forget to look at transfer fees too, especially if you’re moving money around to streamline your accounts.

#4 Automate Savings

Set up regular transfers to a designated savings account. Choose a comfortable amount you can stick with. If you don’t know how much to set aside, start with a number you know you can commit to. And if you’re already doing this, check your automatic transfers and consider whether now’s a good time to adjust or increase them.

Pro Tip: If your savings account is already pretty healthy, reroute your automatic deposits into a retirement account, college fund, or investment account. Also, consider earmarking chunks of cash you get, like annual tax refunds, for savings too.

#5 Back It Up

Create backups of all of your important financial documents and account information. That means backing up digital files on another hard drive and backing up your backups by storing them in the cloud.

Pro Tip: Create a “master” file as a “key” to explain how your backups are organized and where to find that information. You can also organize financial access passwords with a secure password manager. This reorganization can help you out with your next financial spring cleaning. This can also give you a head start on estate planning, allowing an estate executor to access all of your digital assets and information.

#6 Check In With Your Bigger Financial Goals

How are you doing with your financial goals, big and small? What progress have you made and where are you falling short? Reviewing where you’re at, how far you’ve come, and where you want to be can help you figure out when and how to adjust course, so you stay on track.

Pro Tip: Turn this step into a conversation so you can get feedback and a fresh perspective. Talking about your bigger financial goals can motivate you to stick with them.

FINANCIAL LESSON
A little financial spring cleaning can bring major rewards.

The truth is, no matter how old you are or how much money you have, financial clutter can pile up pretty fast. Bills, account statements, tax records, policy documents, business agreements, and more — our financial lives come with quite a paper trail. That can overwhelm anyone.

In fact, it can stress us out and frustrate us almost constantly, especially if we’re wasting time trying to sort out the basics. If we ignore all that financial clutter, instead of managing it, we can easily slide into procrastination mode, which can make it harder to look past the clutter and focus on what’s really important.

So, how can you keep it all in check? Make “spring cleaning” a habit and keep yourself accountable.

Risk Disclosure: The content is developed from sources believed to be providing accurate information. Consult your financial professional before making any investment decision.

Ari Baum, CFP® is the founder and CEO of Endurance Wealth Partners, with over 25 years of experience in the Financial Services industry. He brings his in-depth experience to Conceive. Believe. Achieve. for his clients.
Securities and Advisory services offered through Prospera Financial Services Inc. Member FINRA/SIPC.Brokerage and Advisory accounts carried by Wells Fargo Clearing Services, LLC.