Spring into Financial Organization

Spring is the perfect time to refresh and reorganize various aspects of our lives, including finances. By organizing your finances, you can set yourself up for a more stable and prosperous future. We have some practical steps to help you spring into financial organization.

Organizing Your Finances

The first step in any organizational process is to assess your situation.

You’ll need to gather financial documents, including bank statements, credit card bills, loan agreements, and investment records. List your assets (savings accounts, investments, property, etc.) and liabilities (debts and loans). This will give you a clear picture of where you stand financially. Even a simple piece of paper with two columns will work for this exercise; you just want to get a sense of where you stand.

Set up a financial system that works for you. You can choose from many tools, whether it’s budgeting apps, spreadsheets, or financial software. You’ll want a filing system for physical and digital documents to keep everything organized and easily accessible. This will help you stay on top of your finances and make informed decisions.

Debt Review

Now, let’s examine your debts a bit closer. Understanding your debt is crucial for effective financial management. Review your debt list, including credit cards, personal loans/​lines of credit, car loans, and mortgages. Note the total amount owed and the interest rates for each debt. This will help you prioritize which debts to tackle first.

There are several strategies for managing debt. Focus on paying off high-interest debt first, which can save you money in the long run. If you have many debts, you may want to consider debt consolidation options to combine multiple debts into a single payment with a lower interest rate. Create a debt repayment plan that outlines how much you will pay each month and stick to it. This will help you reduce your debt systematically and avoid falling into deeper financial trouble.

Tracking Your Money

Part of sticking to your debt repayment schedule is creating a budget, which is essential for tracking your money. Start by identifying your income sources and your expenses. Put the expenses into fixed (such as rent and utilities) and variable (such as groceries and entertainment) categories. Set realistic spending limits for each category to ensure you live within your means. Find an easy and free budget tool on the CRA website.

Monitoring your spending is equally important. Options include:

• Low tech as they get — grab a notebook and start recording what you spend
• Embrace tech – use a spreadsheet, your banking app, or find a low-cost app to track your expenses
• Keep your receipts – and review them monthly to see how you’re doing.

What’s Your Financial Plan?

A good financial plan involves setting both short-term and long-term goals. Short-term goals might include saving for a vacation or paying off a credit card, while long-term goals could be buying a house or planning for retirement. It’s always good to make sure your goals are SMART (Specific, Measurable, Achievable, Relevant, and Time-bound).

Not sure what a good plan looks like? We can help you evaluate your current investments and savings to ensure they align with your goals and risk tolerance. Adjusting your investment strategy to maximize returns and minimize risks is also part of a sound financial plan. Regularly reviewing your financial plans will help you stay focused and make informed decisions.

Tips for Saving Money

Saving money is an integral part of financial organization. Some easy ways to save money:

• Cut unnecessary expenses like underused subscriptions.
• Reduce your dining out and opt for home-cooked meals. Even doing this once or twice a month can really add up.
• Shop the sales – check weekly grocery flyers, use coupons, and buy frequently used items in bulk when they’re are on sale.
• Save on energy by switching off lights, making sure your appliances are energy efficient, and turning the heat down a degree or two. Grab a sweater instead of turning up the heat!
• Consider public transit as an option over hopping in the car. Or, if it’s doable, plan for a walk or bike to the grocery store — good for your wallet and your heart!
• Pay yourself first! Automate your savings by setting up regular transfers to your savings accounts. Be sure to put them in your budget for tracking.

Use Our Expertise

Last but certainly not least, we’re here to help. Our financial advisors have nearly 500 years of experience, and we are always a phone call or click away! Reach out to us if you need assistance tidying up your financial house this spring.

Connect with us!