Spring Cleaning for Your Finances: Cleaning Up Your Financial Future

Spring has sprung! April has brought warmer weather, longer days, and the first spring showers. Whether you enjoy spring cleaning or dread it, there’s no question that it’s time to start preparing for the warm days ahead. While you contemplate decluttering your home, consider applying a similar outlook to your finances. We’ve come up with a few practical steps you can take to make your financial future as organized as possible.

Think about your insurance policies. Is there anything that needs updating in your insurance coverage? If you have experienced a major life change, such as getting married, having a baby, or buying a home, you may need to update your coverage. There may also be incidental policies you might want to add. Here in Texas, spring hailstorms have already started. If you park your car outside, you may want to adjust your deductible or coverage policy in anticipation of potential dings.

Take a look at your credit report. Your credit score plays a large role in many areas of your finances, from the interest rates you pay to your loan approvals. Most banking institutions offer a free credit report that can be used to assess your standing. If there are any areas of your report that are dragging your score down, consider implementing steps that will fix those mistakes and raise your overall score.

Tax season may have just ended, but don’t fall into the trap of ignoring your taxes again until next year! Many people procrastinate their taxes until the very last minute, which can leave them in a bind. Take the time this spring to put good practices in place – your future self will thank you. If your tax experience was stressful this year, consider establishing an organizational system that helps keep everything in order. If there are items you no longer need, get rid of them! If you need to find a new tax professional for next year, think about starting your search now instead of waiting until you’re out of time. Make sure that you set yourself up for success by keeping an easily accessible record of any information you might need next year.

Cut back on unnecessary expenses. Do you have memberships or subscriptions that you pay for but don’t use? Go ahead and cancel those subscriptions today. In most cases, it’s better to renew them when you are ready to use them than to throw away money on something you aren’t currently using.

Consider ways to eliminate your debt. If you have a significant amount of debt, try to consolidate it. Excessive debt can prove to be a hindrance to your larger financial goals. Focus on paying down your highest-interest debt first, and then work towards paying off the rest of it. If you can find ways to accelerate your progress – even by paying an extra $50 each month – try to do so.

Just like spring cleaning your home, cleaning up your finances can seem intimidating at first. But with proper planning, it can easily be tackled – one step at a time. If you are looking to make changes to your current financial goals, don’t hesitate to consult with a financial planner. Any of our GDS Wealth Management team members would be happy to speak to you and discuss a plan that meets your needs. Please contact us at (469) 212-8072 or visit www.gdswealth.com.

‍