Spring Cleaning Your Finances
With spring right around the corner, many of us are ready to embrace the tradition of spring cleaning. While clearing out closets and scrubbing floors are very satisfying ways to ring in the warmer months, spring also offers the perfect opportunity to tidy up your finances.
Here are some tips for “spring cleaning” your finances!
Assess Your Budget and Spending
Looking closely at your budget is a great way to kick off your financial spring cleaning. Take some time to review how you’ve been spending money over the past few months and determine whether your expenses align with your priorities. Tools like Credit Karma or your bank’s tracking features can help you analyze your spending patterns.1
You can then update your budget according to what you uncover, accounting for any seasonal changes such as increased outdoor activities or travel plans. Don’t forget to set achievable goals, such as saving for a summer vacation!
Cut the Clutter: Subscriptions and Services
Spring cleaning often involves eliminating items you no longer use, and the same principle applies to your finances. Take stock of your recurring subscriptions and services. Are there streaming platforms, gym memberships, or delivery services you rarely use? Canceling or pausing these can free up extra cash each month.
Take Control of Debt
Debt can weigh heavily on your financial well-being, but with the right strategy, you can make progress. Start by listing all your debts, including balances, interest rates, and minimum payments. You can then decide on an approach to tackle them, such as the snowball method (paying off the smallest debt first) or the avalanche method (focusing on high-interest debts).
Refresh Your Savings and Investments
Are your savings working as hard as you are? If not, it’s time to optimize them. Consider transferring your money into a high-interest savings account, which can offer better returns than traditional accounts.
Maximize your contributions to registered accounts such as a tax-free savings account (TFSA) or a registered retirement savings plan (RRSP). These options provide tax advantages that can boost your savings and set you up for financial success for the coming season (and beyond).
Review Your Insurance and Financial Plans
Just as life changes, so should your insurance and financial plans. Review your insurance policies this spring to ensure they still meet your needs. For example, you might want to adjust your home or renter’s insurance to reflect recent purchases or renovations. If you own a car, shop around for auto insurance to ensure you’re getting the best rate. Additionally, you can revisit your life insurance and beneficiary designations to be sure they align with your current circumstances.
Get Organized for Tax Season
Spring is an excellent time to get your documents in order with the tax deadline approaching. Gather all necessary receipts and ensure you know applicable tax credits like the Canada Carbon Rebate (CCR).2
Spring cleaning your finances can bring a renewed sense of control and organization to your life. By reviewing your budget, tackling debt, optimizing savings, and preparing for tax season, you’ll set yourself up for success in the months ahead.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.