Spring is in the air and with it comes that undeniable urge we all get to declutter. Whether it’s a physical space like your home, your computer files or even your financial investments, spring is the perfect time to review, rearrange and, possibly, reduce.

In this article we will look at what a financial spring cleaning could look like, talk about why it matters and give you some tips on how to go about the process. Because just like your home, your finances collect clutter over time.

Check in…and check it out

Spring cleaning is all about checking in to see where you are, determining where you’d like to be and then doing the work to get there.

Take your closet for example:

• Where you are: Jammed to the max,
• Where you’d like to be: Able find the pieces you actually enjoy wearing and eliminating the chaos; and
• Doing the work to get there: Evaluating each piece to see if it fits, if it’s in good condition, does it go with anything else, have you worn it in the past year, etc.

The same can be done for your finances and managing your money.

Let’s start cleaning

The start of any successful financial spring-cleaning exercise is to examine your financial situation and habits including a listing of all your bank accounts, credit cards, budgets, and subscriptions.

Save, Review, Toss

When doing a regular spring cleaning, it is often suggested that you take all of your possessions and divide them into three categories: save, donate, trash. You can use a similar process with your finance…just modified slightly. After you have taken inventory of all your financial information, take a good hard look at each item. If you really need it, use it frequently, or see it as a true asset for your future, move it into the “save” category.

Items that are infrequently used, duplicated with other similar items, or provide only moderate or inconsequential benefit, you can move to the “review” category and schedule a time to go back to them in a few months. Until then…try not to use them. If you find you haven’t missed these items at all, they can now be tossed or cancelled, as the item requires. If you find you are looking for the item or wish you could use it, then it might warrant a move over to the “save” category.

Some items will clearly be marked for removal from your life. That subscription to a podcast service you haven’t listened to in six months, or the streaming network that used to have good shows but now…not so much, the credit card you only got for the great sign-up bonus and you’ve never used, a bank account earning no interest but requiring a monthly balance. That’s all money that could be earning something, even a little bit, somewhere else.

Review budgets for excesses and needs

Our needs are constantly evolving as we move through life. Different stages require different levels of saving vs spending, and your budget should be reviewed annually…say every spring, to make sure it’s still inline with where you are in your life. Make sure to review your insurance protection and your will annually, too, to ensure that it meets your current needs. It’s during the busy times of life transitions, like having a baby, for example, that we forget to make sure we have all the protection we need in the places we need it. A good financial spring cleaning will help you catch and course correct to better meet your financial needs and goals.