Spring is in the air, and it’s the perfect time to freshen up not just your home, but also your finances. If you fell off your goals in Q1, no worries, I’m here to get you back on track. If you were perfectly on point with your goals in Q1, now is a chance to revisit them and maybe even see if you can stretch yourself for Q2. Wherever you are, it’s important to take control of your finances and make sure you’re on track to reach your financial goals. Here are some tips to help you spring clean your finances:
1. Review Your Budget
Take a look at your budget from the past few months and see what can change. Are there any subscriptions or memberships you’re not using? Are you overspending on dining out or entertainment and underspending on self-care? Make adjustments as needed to ensure you’re living within your means but also enjoying your life. I am a big fan of value-based budgeting. Basically, spending money on the thing-0s you value, and mercilessly cutting in the areas you don’t. Make sure your budget is aligning with your values. Download my financial tracker to make sure you’re working towards meeting and exceeding those goals.
2. Check your credit score
Your credit score is an important factor in determining your financial health. You can check your score for free with online credit bureaus like Equifax or TransUnion. Make sure to review your credit report for errors or discrepancies, and take steps to improve your score if needed. A friend that I know had someone steal her identity and open dozens of credit cards in her name! Absolutely insane. The reason she knew was because she has Borrowell which alerted her. If you do one thing today, please open a Borrowell or Credit Karma account, please!
3. Review your investments
Take a look at your investment portfolio and make sure you’re diversified and investing in a way that aligns with your goals and risk tolerance. Here is a video on how you can build a balanced portfolio. Consider consulting with a financial advisor if you need help.
4. Plan for the future
It’s never too early to start planning for your future. Consider opening a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA), or the new First Home Savings Account (FHSA) if you haven’t already. You can also start building an emergency fund if you don’t have one yet.
5. Evaluate your debt
Take a look at your debt and create a plan to pay it off. Consider using the snowball or avalanche method to tackle your debts, and make sure to prioritize high-interest debts first.
6. Review your insurance policies
Make sure you have adequate insurance coverage for your home, car, life and health. Consider shopping around for better rates or coverage if needed. Reach out to an insurance broker.
By taking these steps to spring clean your finances, you’ll be well on your way to achieving your financial goals. Remember, financial literacy is key to building wealth and creating a better future for yourself and your family.
Happy spring cleaning!