Mid-year is a great time to not only do spring cleaning but take inventory of your finances.
When most people tackle spring cleaning, they stumble across things that have been missing for a while. “Oh, that’s where my favorite t-shirt went!” The same thing happens with our finances. Accounts we forgot we had, subscriptions quietly draining our wallets and spending habits that crept up without us noticing.
This spring, take inventory of your finances with this simple 3-step checklist:
1. Review Your Financial Accounts
Take inventory of every account you have and where it lives: checking, savings, brokerage, retirement, you name it.
- Check for accounts you may have forgotten like old 401(k)s, dormant savings, etc.
- Why? Because it could end up in your state’s abandoned property.
- Note the balances in each account.
- Why? Because many banks and institutions charge small account fees
- Consolidate smaller or redundant accounts where possible
- Why? Clutter creates confusion
2. Review Subscriptions & Streaming Services
Pull up your recent statements and look for subscriptions that automatically charge you each month.
- List every recurring charge you see
- Ask yourself: “Do I actually use this? Is it worth what I’m paying? Is there another service I have that does the same thing?”
- Cancel anything that doesn’t make sense
- Mindset Tip: Part of you is going to want to do it “later” or need to “think about it”. Don’t. That’s just your brain not wanting change. Cancel and you can always re-subscribe when you need it.
3. Assess Your Cash Flow & Spending
Your bank statements tell a story. It’s time to read it.
- Review 2–3 months of statements to see where your money is going
- Highlight the most necessary expenses
- Then look at the rest and total them up. That amount is your discretionary spending. It’s what you use when you’re bored or not being mindful – that amount is what you can possibly be putting into an investment account to build wealth.
Spring cleaning your finances doesn’t have to be overwhelming; it just has to be intentional. Start with one section today, and you’ll be amazed at the clarity you feel by the end of the week.
If you’d like a second set of eyes on your financial picture, we’ve built a community of wealth builders like yourself ready to level up in the game of life. Book a quick call HERE with one of our coaches to see if you qualify.