5 Ways to Spring Clean Your Savings
It’s that time of year again: Time to clean out those closets, polish that furniture and clear out that clutter for good! As you work through your home, banishing dust bunnies and organizing your spaces, don’t forget to take a good look at your savings, too. Spring is the perfect time of year to review your saving habits and spruce up your saving goals.
Here’s how to spring-clean your savings in five easy steps.
1. Assess your saving habits
First, take stock of how much you’re putting into your savings each month. To do this, take a look at your monthly budget and review your expenses and income. Experts recommend setting aside a minimum of 20% of your monthly income toward savings, though it will vary by individual or household circumstance. Does your regular savings amount to that or at least close to it? If you believe you should be setting aside more of your monthly income toward savings, take a close look at your expenses to look for ways to cut back. Get rid of any subscriptions you don’t use, including relatively small payments for apps you really don’t need. Remember: Every little bit adds up.
Spruce up those savings!
2. Consolidate and simplify accounts
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. Be sure to compare fees, interest rates and other features before making any changes.
Clean up those accounts!
3. Reevaluate your financial goals
Take the time this season to review your saving goals. What are your long- and short-term saving objectives? Do you still want to save up for them? If yes, are you on track to reach your goals on schedule? Do you need to make any changes to the amount you set aside each month, or to the timeline? If you no longer need or wish to save up for the goals you chose in the past, consider setting new ones at this time. Think of your future wants and needs, as well as small pleasures you’d love to enjoy in a few years, or even a few months. For example, your saving goals can include a down payment on a home, a new car, a recreational vehicle like an ATV or a boat, a dream vacation or funding for a wedding.
Get those goals sparkling!
4. Automate your savings
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. You can specify the amounts you’d like to put into each account and choose the day of the month that works best for the transfer. Things are always more likely to happen when you set up a stress-free way to facilitate the process.
Make that monthly transfer shine!
5. Use a savings app
Bring your savings to the 21st century by harnessing the power of a savings app. You can choose from any number of money management apps, like YNAB(link is external), which will allow you to track your savings, review and analyze your spending habits and help you stick to your budget each month without fail. Savings apps, like Acorn(link is external), will take it one step further and actually allow you to invest and save in 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 it’s time to make your savings sparkle again. Use the tips outlined here to clean up your savings to benefit your short- and long-term financial health.