Did you make financial resolutions at the start of the year? With spring in bloom and summer just around the corner, now is the time to revisit your financial goals! Here’s how to get your spring financial check-in underway.
Step 1: Check in With Your Financial Priorities
The goals you set at the beginning of the year might still be relevant three months later—but there’s also a good chance your priorities may have changed. This is especially true at a moment in which global economic headwinds continue to blow, from a number of directions. Some people’s home-buying hopes have been put on hold, others are prioritizing saving for the future, while still others are looking to move sooner than expected in search of employment.
Step 2: Evaluate Progress and Pitfalls
Take a look at your earning, spending, savings and debt payments for the first quarter of the year. Did you save what you intended? How’s your debt-to-income ratio? Did any surprise expenses arise, which depleted an emergency fund faster than expected? Checking recent bank statements may be useful in this evaluation, and it could be a good idea to check your credit report too. You can request a free annual credit report from one of the three U.S. credit bureaus.
Step 3: Do a Habit Reset
Many people start the year with strong financial habits, but fall out of practice as the months go on. Therefore, spring is an excellent time to do a money habit reset. The definition of a “good” financial habit may chance depending on your priorities, but in general, good habits include building a monthly budget, tracking spending, paying down high-interest debt, saving money in an emergency fund, and contributing to an Individual Retirement Account (IRA) where possible.
Step 4: Streamline Goals
If you’re coming into springtime with less financial progress than you hoped to see, it might be time to streamline your goals for the year. Instead of aiming to pay down debt and fund an emergency account, focus on paying off the high-interest debt first. If you’re finding it stressful to make retirement contributions while saving for a house, consider making home ownership the priority and putting retirement savings on the back burner—at least, for the moment.
Step 5: Celebrate the Wins
When checking in with your financial goals after three months, it may feel like no progress has been made. Try to stay positive! In a time of economic uncertainty, it’s challenging to stay on track with personal goals. Always take time to recognize the wins! Celebrate your efforts to build a household budget, pay off high-interest debt, reduce spending and keep up with your credit score. Even the smallest steps toward financial wellness can make the biggest difference.