6 financial spring-cleaning tips to boost your finances

Just like tidying up your home clears space and boosts your mood, spring cleaning your finances can bring clarity and peace of mind. Winter may have left clutter in your living room — and possibly in your wallet, too. Taking time now to reset your personal finances can help you feel more in control and better prepared for what lies ahead.

Here are six practical ways to clean up your finances and align them with your long-term goals:

1. Reevaluate and adjust your budget

Spring is a good time to take a fresh look at your monthly budget. If you’re living paycheck to paycheck or struggling to hit savings goals, your budget may not reflect your current financial reality.

Many people build a budget and then forget to update it as life changes. Overspending on non-essentials like dining out or subscriptions can leave little room for debt payments or savings. Start by listing your monthly income and fixed expenses. Then, trim back your “wants” to ensure essentials and goals like your retirement account and emergency fund are covered.

As summer approaches, anticipate seasonal changes in spending — vacations, childcare, and changes in utility bills often throw off monthly plans. Adjust your budget now to stay ahead of those expenses.

2. Review your credit accounts

Keeping your credit in good standing is essential to maintaining financial health. Review your credit report for errors, unfamiliar accounts, or signs of identity theft. Monitoring your credit helps ensure no one has opened accounts in your name without your knowledge.

Examine each credit card and loan statement carefully. If you find purchases you didn’t authorize, report them immediately. Even small charges can accumulate and cost you interest. Staying vigilant can help you improve your credit score and secure better interest rates on loans, credit cards, or future debt consolidation options.

3. Cancel unused subscriptions

With the rise of streaming platforms and other software-as-a-service (SaaS) tools, it’s easier than ever to lose track of monthly subscriptions. Many people sign up for a free trial, forget to cancel, and end up paying for services they no longer use.

Take time to comb through your bank and credit card statements. Identify any recurring charges for subscriptions you didn’t realize were active. Cancel those you no longer need. While a $9 charge may seem insignificant, multiple unused subscriptions can drain your budget and slow your progress toward your financial goals.

Cutting back here frees up funds you can redirect into your savings account, emergency fund, or toward paying down debt.

4. Build or boost your emergency fund

If you haven’t reviewed your emergency fund recently, now’s the time. Inflation has raised the cost of living, and what used to cover three months of expenses may no longer stretch as far.

Financial experts recommend saving enough to cover at least three to six months of essential living costs. If you’re already there, consider saving a bit more to account for rising interest rates, job uncertainty, or unexpected expenses. Store this money in a high-yield savings account so it earns interest while remaining accessible.

An emergency fund brings peace of mind, prevents reliance on high-interest credit cards during a crisis, and strengthens your overall financial plan.

5. Make a plan to pay off debts

If you’re carrying high balances or struggling to make progress, it’s time to develop a specific plan to pay off debts. Begin by listing what you owe — credit cards, loans, and any other obligations — along with interest rates and minimum payments.

Next, decide how you’ll attack your debt. Some people use the debt snowball method (tackling the smallest balance first), while others prefer the avalanche method (targeting the highest interest rate). Either strategy works as long as you’re consistent.

If your debt feels overwhelming, consider speaking with an Empeople financial guidance expert about debt consolidation. Consolidating into a single payment with a lower interest rate can simplify your repayment and help you reach your financial goals faster.

Reevaluate Your Financial Goals

Now that you know where your finances stand, it’s important to see if your long-term financial goals are still realistic and achievable. If your current goals seem too far-fetched, you might want to break them down and try to find more short-term goals to help you reach the longer-term goals.

As you reevaluate your goals, consider whether you’ve had significant changes over the past several months or years since you set the goals. This could put your financial goals out of date, and it could be a leading cause of you not reaching your expected destination. You need to set realistic goals that can be achieved within your current budget and lifestyle.

Bottom Line

Spring is a great time to clean up your home, yard, and finances. By evaluating how your current finances are compared to your expectations, you can be honest with yourself about where you need to go and what you need to do to get there. Regular cleaning up of your finances can make all the difference in a happy life.