It’s springtime again, and that means spring cleaning: time to clean out those closets, polish that furniture, and clear out that clutter! Spring cleaning doesn’t have to just be limited to scrubbing the house, though. Spring is also the perfect time of year to review your saving habits and spruce up your saving goals. It’s important to set aside time each year to review your savings plans and goals, even if on the surface everything seems to be going well. During each year, things change that can impact our finances – increased cost of items you buy regularly, a change in job or salary, paying off a loan, all of these situations and more can change the amount you’re saving or are able to save. If it’s been a while since you’ve given your savings a good, hard look, then start this spring and make it an annual habit!
Not sure how to get started? Here’s how to spring-clean your savings in five easy steps.
First, take stock of how much you’re putting into savings each month. Consider your short and long-term savings goals, the timelines for each, and if you’re trending towards hitting those goals. If it looks like you might fall short of your goals, then consider increasing the amount you’re saving each month. If you need to set aside more of your monthly income toward savings, look for ways to cut back on your discretionary spending – things like buying coffee at the local shop instead of making it at home, eating out instead of planning meals at home, and that streaming service that you never actually watch.
Spruce up those savings!
Next, take a look at the places you keep your money. If you have multiple savings accounts, retirement accounts, or investment accounts, consider consolidating them to streamline your finances and reduce the hassle it takes to manage them all. If you’re struggling to save, part of it might be all the administrative tasks you find yourself doing across several accounts. Paring down and simplifying your finances might make it easier and more attractive to start saving each month. Be sure to compare fees, rates, and other features of your different accounts before making changes.
Clean up those accounts!
We mentioned goals in passing as part of assessing your saving habits, but now it’s time to focus specifically on them! What are your long and short-term saving objectives? When was the last time you reviewed and set financial goals for yourself? Do you still want to go after them? If not, consider setting new ones. Think of your future wants and needs, as well as small pleasures you’d love to enjoy in a few years, or even in a few months. Whatever your goals are and whatever the timeline is for them, consider how much you would need to save each month for how many months to reach your goal so you can stay on target.
Get those goals sparkling!
Now that you have your saving goals clearly defined, it’s time to make it happen by itself. Set up automatic monthly transfers from your checking to your savings account(s) so you never forget to feed your savings. We mentioned earlier that one of the roadblocks to saving might be the hassle of going into your accounts and moving money around. With automatic transfers, you can save without having to lift a finger every month – you might not even miss the money sent to savings when it’s taken out automatically.
Make that monthly transfer shine!
The financial industry is firmly part of the modern world, and your personal finances can make use of technology too. There are many apps to choose from for a range of different financial needs. You can choose from any number of money management apps, like YNAB (You Need a Budget), which will allow you to track your savings, review and analyze your spending habits, and help you stick to your budget without fail. Savings apps, like Acorn, will actually allow you to invest and save within the app. Taking your savings to the digital level will make you more likely to stick to your goals.
Spiff up those saving apps!
Spring is in the air, and people everywhere are breaking out brooms and mops to get to work on their spring cleaning. However, your most important cleaning may not require either one! This spring, add your savings to your list of things to spring clean, and follow these five steps to get your finances in order. Even better, make this the first year of your annual savings spring cleaning – regularly checking back on your plans and goals can go a long way to achieving them!