Now that the flowers are in bloom (and allergy season is here), it’s time for a little spring cleaning. As you begin to open the windows, get out your warm-weather attire, and get rid of all the extra “stuff” you accumulated throughout the winter season, it’s also time to think about spring cleaning your finances. That’s right, your finances could always benefit from some time spent making sure you’re diversifying your portfolio and that your investments are in good shape for the year ahead.
4 Tips for Spring Cleaning Your Finances
Reviewing your finances every quarter can go a long way in helping you stay on track with your goals and dreams. Here are some tips for spring cleaning your finances to help you stay on track:
1. Diversify Your Portfolio
One of the most powerful tools you can utilize for your future is diversification in finance. Having the right mix of stocks, bonds, mutual funds, and even short-term investments can help you get on track for a financially successful retirement.
When diversifying your portfolio, it’s important to consider your risk tolerance. How strategic do you want to be with your investments? What level of risk are you comfortable with? Are you open to taking bigger risks for potentially higher returns, or do you prefer a slower, steadier approach? It’s crucial to work with a financial advisor who can help you evaluate your risk tolerance and align it with your long-term and short-term investment goals.
2. Review your investments.
When you’re working on spring cleaning your finances, it’s important to revisit your goals and assess your current stage of life. It’s crucial to ensure that the goals you initially set when you started investing still align with your current situation and future plans.
If you just got married or added a little one to your growing family, your goals will need to change. Maybe that growing family of yours makes you decide to grow more slowly or take fewer risks with your finances for a season—and that’s okay. Whatever season you’re in, your financial advisor can help you create a plan and review your strategy with every new life change.
3. Cut out the dead weight.
When we purge unnecessary things from our home during spring cleaning, we feel better. Our homes feel more intentional, and even more peaceful. Our finances are similar. When you review your portfolio and financial strategy, you might find that some financial decisions, investments, or even your general direction aren’t serving you anymore. That’s when you know it’s time to cut out the dead weight.
Consider removing any stocks, bonds, or other assets that aren’t performing as you’d hoped they would. Double down on your financial goals and make sure your financial decisions will help you get there. Doing this regularly will help ensure that your finances will continue working for you in the months ahead.
If you want to begin spring cleaning your finances but aren’t sure what investments to cut, how to align your life goals with your season of life, or how to build or diversify your portfolio, a financial advisor can help. We can meet you right where you are and help you come up with a financial plan that will help you get to where you want to be. Talk to a SageSpring Wealth Partner today—we’d love to work with you.
