Spring Cleaning Your Finances: 5 Tips for Tidying Up Your Finances


May 12, 2021

Something about the air feeling warmer, flowers starting to bloom, and birds chirping in the spring brings a sense of a fresh start into our lives. This is usually the time when people reorganize their closets and garages or get their gardens ready, but have you ever thought about getting your finances in order as well? Skylight Partner and Financial Advisor Michael Nusbaum has broken down a few helpful tips to keep your finances organized, no matter the time of year!

Tip #1: Meet with a financial professional.

Whether you are starting your first job with no financial responsibilities or currently behind on your retirement plan, it is never too early or late to meet with a financial professional. “I would recommend at least having an annual or semiannual review with a financial professional to come up with a strategic plan for your financial goals,” said Michael. Not only will the advice from a professional help alleviate the stress of trying to plan alone, but they can also help hold you accountable with staying on top of your finances.

Tip #2: Keep a budget and save.

Dedicating time to figure out where you are spending money and how much you earn is crucial for keeping a budget. “Pay yourself first,” Michael said. In other words, save now to help yourself in the future. Spending within your means and saving where you are able can help prevent you from racking up debt and prepare you for more financial responsibilities later in life.

Tip #3: Stay out of credit card debt.

Using a credit card can lead to spending money that you do not necessarily have, which can end in having to pay off debts. “Credit card debt is hard to get out of because you have to pay interest on interest, which can take a long time and prevents you from being able to save money,” Michael stressed.

Tip #4: Make your financial documents easily accessible to YOU.

If you plan on meeting with a professional, have documents like your financial statements and tax returns ready and organized. According to Michael, “in order for me to make the appropriate recommendations for a client, I need to have the proper documentation. Too often do I have potential new clients that cannot access their old financial statements, and that makes it difficult to give the right assessment for their situation.”

Tip #5: Start planning early.

The younger you start implementing financial best practices, the more potential you could have for reaching financial goals you might not have thought were possible. “It is imperative for young people to start financially planning early on so they can take advantage of the time they have ahead of them,” said Michael. Having a plan in place at a young age with little to no responsibilities can make a big difference when, inevitably, more responsibilities stack up over time.”

Overall, these healthy financial habits can help you better understand your finances and stay on top of your financial goals all throughout the year! What better time to start than now?

Thanks for sharing, Michael! For professional help with cleaning up your finances, reach out to one of our dedicated team members here.