Spring Clean Your Savings

1. Organize your financial goals

Start by revisiting your financial goals. Have they changed since the last time you reviewed them? For example:

• Are you saving for a big purchase, like a house or car?
• Are you building an emergency fund or saving for a vacation?
• Have new priorities, like college funds or retirement, entered the picture?

Accurately framing and focusing your goals will help you ensure your savings align with your current needs and future aspirations.

2. Polish your savings accounts

Take a close look at your savings accounts. Are they working as hard as they could be? Evaluate the following:

• Interest rates. Are you earning competitive interest rates on your savings? Consider switching to a high-yield savings account or a credit union account that’s offering better returns.
• Fees. Check for maintenance fees or minimum balance requirements. These can slowly erode your savings over time. For instance, if you have “extra” savings accounts you don’t intend to use, merge them into another to avoid potential inactivity fees (and simplify your money).
• Accessibility. Make sure you’re not keeping all your savings in accounts that are too easy to dip into. Consider transferring long-term savings to less accessible accounts to avoid temptation.

If you’d like to change up your savings accounts, speak to an MSRP at Mutual Security Credit Union to learn which account may be better suited for your needs and goals.

3. Spruce up your budget

Your budget is the backbone of your savings plan. Spring cleaning is a great opportunity to give that budget a glow up. Here’s how:

• Track expenses. Review your spending habits over the past few months. Identify areas where you’ve overspent or can cut back.
• Adjust categories. Seasonal changes may affect your budget. For example, you might allocate less for heating bills and more for outdoor activities or travel in the spring and summer months. Tweak your categories to better reflect your current reality.
• Automate your savings. If you haven’t already done so, set up automatic monthly transfers from your checking account to your savings account. This ensures you save consistently without the temptation to spend that money first.

4. Clean up your subscriptions

Subscription services can be sneaky budget busters. Take some time this spring to review your checking account statements or use a subscription-tracking app to identify recurring charges for services you no longer use. Canceling even a few subscriptions can free up funds to help boost your savings.

5. Make your emergency fund shine

An emergency fund is a financial safety net that can save you from debt in case of unexpected expenses, like medical bills or car repairs. If you don’t have an emergency fund, or your fund is getting skimpy, now’s the time to build it up. Aim for at least three to six months’ worth of living expenses. If saving that much feels daunting, start small. Even $20 a week adds up over time. A robust emergency fund will ensure you don’t need to dip into savings when the unexpected happens.

6. Dust off your debt

Debt can hold you back from achieving and maintaining financial wellness and from reaching your saving goals. Use this time to create a plan for kicking that debt for good. First, list all your current debts, including balances, interest rates and minimum payments. Then, choose a repayment strategy. You can go with the snowball method, in which you pay off the smallest debts first to build momentum, or with the avalanche method, in which you pay off the highest-interest debts first to save on total interest. During this time, also trim your discretionary spending or look for a side hustle for extra money to channel toward maximizing payments on the first debt on your list.

As you dust off the dirty corners of your home this spring, don’t forget to spruce up your savings, too! Use the tips here to get started.