Spring cleaning is a time-honored tradition that has persisted through the ages, designed to clear away the old and embrace the new. As the energy levels rise with the longer days and the fading effects of winter, this period presents a golden opportunity to sweep away the remnants of the past and enthusiastically welcome the warmer months ahead. This ritual isn’t just about tidying up your home; it’s also the perfect moment to refresh your financial landscape.
While you’re scrubbing the bathroom, washing the bed linens, and organizing that cluttered junk drawer, it’s crucial to give equal attention to your finances. Here are five straightforward yet effective strategies to spring-clean your finances and set yourself up for a successful financial journey throughout 2025.
Leverage Seasonal Energy for Financial Growth
Chris Powell, who is the head of deposits and customer engagement at Citizens Bank, emphasizes that this is an opportune moment to take proactive steps towards financial wellness. With the New Year’s resolutions fading into the background, many find themselves transitioning from a cozy, indoor lifestyle to an active, adventurous summer vibe. This shift in energy can be harnessed to tackle financial goals head-on.
Powell suggests taking a moment to reflect on your aspirations. “Sometimes it’s just stepping back, looking out the window, and appreciating the arrival of spring,” he notes. It’s about feeling that surge of optimism and positivity about the future and asking yourself, ‘What actionable steps can I take to improve my financial situation?’”
Conduct a Comprehensive Financial Review
To initiate your financial spring cleaning, Haley Sacks, the savvy finance expert behind MrsDowJones, recommends anchoring yourself in your current financial status. Whether you choose to do this independently or with the assistance of a financial advisor, it’s essential to thoroughly review your accounts, including balances, outstanding debts, and applicable interest rates.
Sacks emphasizes that effective budgeting should focus on affirming “yes” to the things that genuinely matter, rather than simply denying yourself enjoyable experiences. This is your chance to dig deeper into your financial habits.
“Just like your wardrobe should reflect your personal style and values, your financial records should do the same,” Sacks advises. “Examine your purchases from the past month and ask yourself: Did this bring me joy? Does it align with my long-term goals?”
As you evaluate your spending, keep an eye out for potential “leakage” in your finances, as Powell describes it. Are you still subscribed to that Apple TV service just for one show? Should you consider swapping Kindle Unlimited for a free library card? Are you really utilizing that Nuuly subscription? Canceling unnecessary subscriptions can prevent you from wasting money for the rest of the year.
Realign and Set Clear Financial Goals
Visualize the future you want to create, whether it’s a vacation to Mexico City, a well-funded emergency savings account, or that stylish swimsuit you’ve been eyeing. You can incorporate these aspirations into your financial plan.
“With summer on the horizon, many find it to be an expensive season,” Sacks points out. “Often, these costs can catch us off guard simply because we haven’t planned for them. However, you can anticipate them.”
She suggests creating a list of upcoming expenses and working backward to determine how much you need to save to afford them. When you have a plan in place, “it makes the purchase feel much less burdensome,” Sacks adds.
Enhance Your Savings Strategy
Once you’ve successfully trimmed unnecessary expenses, shift your focus to maximizing your savings. An excellent way to start this process is by utilizing your upcoming tax refund. Millions of Americans will receive their refunds in the next few weeks, with the IRS reporting an average refund amount of $3,116. Sacks recommends allocating 10% to 20% for enjoyment and directing the remainder toward your savings goals.
People are beginning to feel a bit more financially secure and are wondering how to best utilize this newfound cash, Powell states. “Consider making a few purchases you’ve been eagerly anticipating, but also ensure you have clear financial objectives in mind.”
Although high-yield savings account rates have seen a decline as the Federal Reserve adjusts rates, they still offer a viable option for parking cash and earning interest. For instance, Ally currently provides a competitive 3.6% on its high-yield savings account compared to the national average rate of just 0.41%.
Utilizing automation can be a game-changer here. Setting up automatic weekly deposits into a high-yield savings account is an effective way to gradually grow your savings without the stress of manual contributions.
“Don’t rely solely on willpower; instead, leverage technology,” Sacks advises. The options are abundant, with apps like Qapital, Chime, and Acorns offering automated savings features that can support your financial growth.
Explore Creative Income Opportunities
Sacks encourages you to continually seek ways to increase your income. During your spring cleaning, consider which items from your closet can be sold for extra cash. Have you recently asked for a raise? Are there side hustles you could explore to boost your earnings?
“We often focus on reducing spending, which can be tedious and unsatisfying; no one enjoys sticking to a budget,” she explains. “But there is only so much you can cut from your expenses.”
Investing time into improving your financial situation now can yield significant benefits in the future. “When it comes to financial adjustments, think sustainability and the power of compounding over time. While cleaning up your finances, avoid drastic measures; instead, focus on leveraging automation,” Sacks advises. “Position your future self for success.”
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