By: Joey Casolaro, CFP®
Every spring, we throw open the windows, drag out the mop, and tackle the clutter that's been quietly piling up since January. But while you're scrubbing baseboards and donating old sweaters, your finances might be sitting in the corner: dusty, disorganized, and in need of attention.
So, where do you begin?
Start with a cash flow sweep (income and expenses).
Pull up your last three months of bank and credit card statements. Circle every recurring charge and decide, does this add value to my life or bring me joy? If not, unsubscribe and toss it. Think of your cash flow like a closet. Over time, it can fill up with expenses you forgot you had and subscriptions you don't use. Spring is the perfect time to swing that door open and take stock of what's in there.
Then, tackle your "bad" debt.
Not all debt is created equal. A mortgage is building equity with every payment, but high-interest credit card debt is like a leak in your wallet that never stops draining. And like a pile of laundry, ignore it long enough, and it becomes completely overwhelming. Start by laying it all out: list every balance, interest rate, and minimum payment. Then, focus your extra payments on the highest-interest card first while keeping up with minimums on the rest, and make paying above the minimum a non-negotiable habit. Even a small extra payment chips away at the principal faster than you'd think.
Next, tend your financial garden.
Savings accounts are like plants: neglected, they wither as inflation erodes their purchasing power. Check your interest rates. If your emergency fund is sitting in an account earning 0.01%, it's time to transfer it to a high-yield account to maximize interest. Also, check your investment accounts and employer retirement accounts. Ensure funds are invested and that any cash or cash equivalents (e.g., money market fund, Treasury Bill, CD) are used for a specific purpose.
Finally, don't just clean: organize.
Update your beneficiaries, revisit your insurance coverage, and confirm your investment and savings contributions still align with your goals.
Spring cleaning your home feels good. Spring cleaning your finances? "That's how wealth is built, one intentional decision at a time."
Joey Casolaro is a CERTIFIED FINANCIAL PLANNER® at HIGHLAND Financial Advisors, a Fee-Only fiduciary wealth advisory firm that offers comprehensive financial planning, retirement planning, and investment management. Joey graduated from the University of South Florida with a bachelor’s degree in personal finance and successfully passed the CFP national exam in 2021. Joey enjoys working out, spending time outdoors, and hanging out with family and friends in his free time.
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The above article was written with the assistance of artificial intelligence (AI).