With time change behind us, it seems that spring is finally on its way! Does your family ritually participate in spring cleaning? I am a fan of all things organized, so the annual reminder to tidy up is welcome. While we take some time to clean up areas like our kitchens and garages, we should find time to give our finances a refresh too! All too often we make a budget or a financial goal and forget about their vital purposes in our busy seasons.
Budget
A new budget always begins with good intentions. A mindset of stewarding your finances in a responsible way, allowing for increased savings or room for spending. The distractions arise when you find yourself in situations that require a stretch in the budget. Maybe you experience car troubles or the cost of living increases, disrupting your initial plans. Take some time to reevaluate your budget this spring. Decide if changes are required or if a refocus would suffice. Remember your goals that inspired your budget.
Emergency Fund
With a refocus in mind, an emergency fund is a key element to a well rounded budget. Any individual or family should have an emergency fund for life’s curve balls. This fund cannot be touched unless an unexpected expense occurs. This can take the form of a savings account concept or an insurance policy like Disability Insurance. Disability Insurance provides your family income when you may not be able to provide for yourself or your dependants, due to illness or injury. This spring is the perfect opportunity to make sure your family is secured financially to the best of your ability.
Debt
Another area of finances that can be neglected or avoided is debt. All too easily can we find ourselves prioritizing the payments for fun things and expenses that are smaller or less intimidating. Steps taken to shrink your debt is always my recommendation. Once debt is out of the way, you are able to truly move forward with the rest of your financial goals. That is why I suggest prioritizing paying off debt and including the payments in your budget. This takes commitment and focus and possibly not being able to participate in activities you normally would.
Financial Goals
Financial goals can feel abstract without intentional plans attached to your future. What are your priorities? Do your actions today bring you closer to your dreams for tomorrow? If you’re not convinced that you are taking the necessary steps to reach the lifestyle you intend on living, reevaluate your goals. Allow yourself to dream big! Then note and prioritize the small, reachable goals required to keep you on track.
Happy to Help
As a Certified Financial Planner, I am happy to help with this step! I love assisting clients who want to better their financial situation. Whether the end goal is retirement or paying off a mortgage, I love when clients see their goals achieved.
Create an appointment online for an in person or virtual meeting to include me on your financial spring cleaning. You can also reach me on social media or at dan@danhoucher.com.
