Spring Clean Your Finances

Birds singing, flowers blooming, spring is here. It is the perfect time for fresh starts, and your finances can be one of them. If you’re ready to begin, take these seven steps to do a little financial spring cleaning. Even if you can only tackle one at a time, each step can lead to greater financial security and peace of mind.

Your Financial Spring-Cleaning Checklist

Have a financial game plan. Life now may be very different than what you expected before your loss. Think about how your financial goals have changed. Build a plan that starts with where you are today and provides a road map to where you want to go.

Spend less than you bring in. Track money coming in and going out to understand your new baseline. Consider changes to your income and expenses, and any benefits you may be receiving. Use the USAA Educational Foundation Budget Builder to get started.

Save for emergencies. When you're able, setting a little money aside each month for unexpected expenses, like home and car repairs, can ease day-to-day stress and provide peace of mind as you move forward after your loss. Over time, try to build up three to six months of living expenses in a separate, easily accessible account.

Use debt responsibly. A strong credit reputation can help you achieve your financial goals, but too much debt can cause stress and strain your budget. Learn more about building credit to help support your finances. If one of your goals is to pay off debt, check out the USAA Educational Foundation Debt Destroyer tool to develop a customized plan based on your situation. You’ll learn how quickly you can pay off debt and how much you could save with the avalanche and snowball methods.

Protect your life, loved ones, and possessions. Insurance helps protect your health, life, property, and your loved ones’ futures. Review your current policies to determine if more or less coverage is needed, and if beneficiary and policyholder designations align with your current needs. 

Invest for your future. Your plans and goals may be changing; how could this impact your future needs? Planning for the future might mean adjusting how you are saving for retirement or investing in your education. Choose steps that support your long-term goals, and go at your own pace.

Prepare your legal documents. Estate planning helps your loved ones navigate the difficult time after your death without extra confusion, conflict, or cost. Protect those you love by preparing key legal documents, like a will, power of attorney, advance medical directive, trust, and letter of instruction.

PHOTOS: USAAED; iStock