Access to digital banking and online applications will be unavailable on Saturday, 3/15 10:00 PM, through Sunday, 3/16 4:00 AM.
Spring is a great time to declutter both your home and your finances. With longer days and warmer weather on the way, it’s the perfect opportunity to clear out the old and start afresh — including the way you manage your money. It’s also the ideal time to reassess your budget, reorganize your financial documents, and set new, achievable savings goals.
Keep reading as we outline clear, practical steps to review your financial health, organize essential documents, and refine your budgeting processes. We'll also look at the importance of building an emergency fund and consider some effective tools to track and manage your spending.
Got your financial feather duster ready? Here are the four key steps that should form part of any spring decluttering exercise:
First, let’s take a careful look at where you are right now. Begin by laying out all your income sources, including your paycheck, side hustle earnings, and any rental and retirement income alongside a list of your monthly expenditures, including debt. This will give you a clear picture of where your money comes from and where it's going and can help you spot areas where you can cut back on spending.
This is also the time to do some proper spring cleaning and reorganization of your financial records. Gather items such as bank statements, pay stubs, loan documents, and any investment records, and go through any existing documents you already have. Create or reorganize your filing system. It’s fine to stick with a paper filing system but consider transitioning to a digital-only system to improve security.
Is your budgeting system working for you or could it be better? Financial spring cleaning is the time to tweak or rethink your budgeting process. There are several different ways to allocate money in a budget. These include:
Zero-based accounting: Every dollar you earn is allocated to a specific use so the balance equals zero at the end of the month.
Envelope method: Money is physically or virtually distributed into envelopes for each budget category to prevent overspending.
50/30/20 method: This allocates 50% of your income to necessities, 30% to wants, and 20% to savings and debt repayment. This can help you balance living comfortably while saving effectively.
Many people use a spreadsheet to track and manage spending. However, budgeting software and apps like YNAB (You Need A Budget), Goodbudget, and EveryDollar can automate much of your budgeting process, from tracking your spending to reminding you of due bills. They include tools that can provide valuable insights into your spending habits, helping you stay on track toward your financial goals.
An emergency fund is designed to cover unexpected expenses such as medical bills or car repairs and to tide you over in the event of job or income loss. It acts as a financial buffer to help you weather tough times without relying on credit card debt or loans.
Start by saving whatever you can, but aim to put aside enough to cover 3-6 months of living expenses, depending on your job stability and household needs. First, set an achievable monthly saving goal, and gradually increase it as your budget allows.
One way to boost your savings is to set up an automatic transfer to your savings account right after you receive your paycheck. This “pay yourself first” approach lets you prioritize savings for your emergency fund without feeling the impact of missing funds.
Foothill Credit Union’s Regular Savings Account is ideal for this purpose. You can open a primary savings account for as little as $5 and earn competitive interest. You can also separate your emergency fund cash into a secondary savings account with no minimum balance requirement.
And, once you have a small nest egg in place you can step up to our generous Money Market Account, which pays higher, tiered rates of interest on amounts of $1,000 and up.
Finally, decide on your major financial goals for the year ahead, or make adjustments to your existing targets. Whether you're aiming to pay off debt, save for a down payment on a home, or invest in your education, your goals should be SMART:
Specific: Save for a specific purpose, not just a vague amount
Measurable: Set monthly targets to help you progress towards your goal.
Achievable: Do not set goals that are unfeasible to reach.
Relevant: Choose a goal that makes a real difference to your life.
Time-bound: Set a clear deadline to achieve your goals
At the same time, remember that life changes, and so might your financial situation and priorities. That’s why it’s important to regularly review and adjust your financial goals. Your financial spring cleaning is a great time to do this, but consider doing it at least semi-annually or whenever you experience a significant life event.
Checking in regularly helps you to assess your progress and make necessary adjustments to your budget or savings strategies. It also keeps you motivated and on track by celebrating milestones along the way.
Your financial spring cleaning sets you up for success in achieving your goals. It’s also a great way to spot some easy financial wins to give you momentum along the way. Your budgeting process should flag up unused services or subscriptions that you can eliminate, while a review of your debt is a good time to renegotiate the rates on your credit card.
That said, taking on your financial situation can feel a little overwhelming. Fortunately, at Foothill Credit Union we offer a full range of tools to help you take charge of your money. In addition to our easy-to-use savings accounts, these include:
Flexible Checking Accounts: Our Protection Plus and Rewards checking accounts provide an effective place to receive and manage money with great dividends AND generous rewards.
Generous Share Certificates: Ready to put a little money away to earn some serious interest? Our share certificates are designed to help you turn a savings nest egg into long-term wealth.
Financial Health Resources: We want to make it easy for you to succeed. That’s why we offer our members access to tailored financial “pathways” with our Financial Health Center as well as expert advice and educational tools through our partnership with Greenpath Financial Wellness.
At Foothill Credit Union, we’re here to help you with your financial spring cleaning (or at any other time of year). Contact us today, come on into one of our branches, or click below to open an account and become a member today.
Join Now
