With tax season behind you, it’s the perfect time to step back and take stock of your financial life. Just like spring cleaning your home helps you feel more organized and refreshed, a financial refresh can give you clarity and confidence moving forward.
Here are five practical steps to help you spring clean your finances and set the tone for the rest of the year.
1. Review and Adjust Your Tax Withholdings
Your tax return gives you clear feedback about whether you’re withholding too much or too little from your paycheck. If your refund was larger than expected or you owed more than you’d like, it might be time to update your W-4 or estimated tax payments.
By adjusting your withholdings now, you can:
- Better align your cash flow with your actual income needs
- Avoid surprises next tax season
- Make the most of your monthly income
2. Reevaluate Your Budget and Spending Habits
Tax season often brings greater awareness of where your money went last year. Use this opportunity to review your budget and cash flow:
- Are your spending patterns aligned with your values and goals?
- Are there subscriptions or expenses that no longer serve you?
- Could you increase savings toward retirement, education, or a health savings plan?
Even small adjustments can make a big impact over time.
3. Rebalance and Reassess Your Investment Portfolio
Spring is an ideal time to evaluate your investment strategy, especially after a volatile year or major economic shifts. Rebalancing your portfolio ensures that your asset allocation still reflects your goals and risk tolerance.
You can work with your financial advisor to:
- Discuss tax-loss harvesting or other tax-efficient investing strategies
- Find opportunities to diversify or consolidate accounts
- Learn how current interest rates impact your fixed income or cash positions
4. Check In on Your Financial Goals
Are your goals still the same as they were at the beginning of the year – or even last year? Life moves fast, and your financial plan should evolve with it.
This is a good moment to:
- Revisit short and long-term goals
- Assess retirement or education savings
- Update savings plans for upcoming life events like a vacation or home renovation
If you’ve experienced a life change like landing a new job, a change in equity compensation, or welcoming a new baby, you may want to touch base with your financial advisor to discuss how these changes may impact your strategy moving forward.
5. Review Your Estate Plan and Beneficiaries
It’s not the most exciting part of financial planning, but it’s one of the most important. A quick review of your estate documents, including wills, trusts, powers of attorney, and beneficiaries can save time and stress down the line.
Make sure your estate documents:
- Reflect your current wishes and family structure
- Name appropriate guardians, executors, and beneficiaries
- Are kept somewhere where a loved one can find
Make Financial Spring Cleaning Part of Your Annual Routine
Tax season may be over, but the insights it provides can set the stage for reflection and a stronger financial year. At Marshall Financial, we believe that proactive planning can help lead to lasting peace of mind.
If you’re ready for a financial spring refresh or want support in building a more confident, tax-smart strategy our team is here to help.
Let’s get your finances working for you in every season.
