Spring-Cleaning, Money Edition: 9 Money Moves That Will Get Your Finances in Tip-Top Shape

Set down your broom and pick up your budget: Here are nine money moves you can make now that will get your finances squeaky clean.

'Tis the time for spring-cleaning, and Elle Kaplan, finance expert and founder of LexION Capital, tells us, "just as you need to regularly clean up your home and clear out clutter, your finances need at least an annual tune-up to ensure you have your financial ducks in a row. Spring is an excellent time to do this because you’re already in the mind-set of making positive changes and tidying up."

So set down your broom and pick up your budget: Here are nine money moves you can make now that will get your finances squeaky clean.

  1. Automate your savings and investment contributions. In the same way that Roomba makes it easier to keep your floors in tip-top shape—by doing the vacuuming for you—automation is a great way to clean up your monthly to-do list. "By setting up an auto transfer, money can go directly from your paycheck to your savings account or investment account," says Kaplan. "That way, you don’t have to figure out how much to contribute every month, and you won’t have the temptation to spend that money elsewhere." To get started, Kaplan advises setting aside 20 percent of your income toward savings and investments.

  2. Ditch your documents. While you're throwing out random Post-It notes and other bothersome pieces of paper, you can also collect your financial statements and scan them, eliminating unnecessary clutter in your filing cabinet. "You don’t need piles of statements sitting around stressing you out," says Mary Beth Storjohann, financial coach and founder of Workable Wealth, who suggests organizing your now-electronic files in a computer folder labeled "money," with sub folders for taxes, account statements, bills, estate planning, insurance paperwork, and budgeting. "This will save you time when looking for docs going forward," she explains.

  3. Get rid of dirty debt. Like a pile of dirty dishes, dirty debt is an eyesore—and should be an immediate concern. "Any debt with high interest rates, such as credit card debt, can have a major impact on your financial future, and will only become a bigger mess if you ignore it," explains Kaplan. You can begin to clean this debt up by determining what you owe and the respective interest rates on each account. "Then," says Kaplan, "you should come up with a long-term game plan to wipe out this debt, by tackling the dirtiest—i.e., highest interest rate—debt first, and finding ways to make every payment on time."

  4. Consolidate your (financial) clutter. Just as you don't really need four Swiffer Wet Jets, you probably don't really need all the financial accounts you currently have. So if you own 401(k)s from previous employers or multiple bank accounts with empty balances, consolidate them so that the one you keep gets good use. "Roll your 401(k)s over to your new employer or opt to consolidate into one IRA that you can manage," suggests Storjohann. "Close old accounts and transfer all bills to be paid from one checking account. Less paperwork. Less time trying to figure out what’s going on with your money."

  5. Reevaluate your spending habits. Just like you're looking through your closet to see what really must stay and what should head to Goodwill, now is also the time to toss out any spending habits that no longer work for you. "Take a look at the times you’ve encountered a budget creep or gone over budget, and address any of the causes behind them," suggests Kaplan. "For instance, do you go on a spending spree or shopping bonanza every time your budget is busted? If you don’t address these underlying habits, the same thing is bound to happen again."

  6. Cut the excess. Let's revisit that whole Swiffer Wet Jet concept. We didn't tell you to find closet space for those three extra mopping devices—we told you to get rid of what you don't need. That's exactly what you should do financially, says Storjohann. "Now is the time to review your spending for subscriptions and memberships you’re paying for, but not necessarily utilizing," she says. "This includes newspapers, gyms, discount sites, and more. If you’re paying for something you’re not using, it’s time to get that money back into your cash flow."

  7. Check your credit score. Your credit score—much like a to-do list—let's you know where you stand, and what you need to do to get things squeaky clean. "You’re legally obligated to receive a free credit report from each of the three bureaus once a year, so spring is a great time to review these," says Kaplan. "Any mistake on these reports can impact your score and your ability to get things like a credit card or mortgage, and could also cause you to pay more for financing. If there’s any damage that’s your fault, such as missing payments, you can start taking steps to repair your score and get back on track financially."

  8. Figure out your net worth. After you spring clean, you know where you stand on the dirty-to-sparkling scale—and that's pretty darn sparkly. And you can figure out how clean you are financially, so to speak, on that same scale by determining your net worth. "Your net worth is what you own minus what you owe," explains Storjohann. "Crunching this number initially is smart to gauge a starting point to measure future progress from. This number should be checked in on every six to 12 months to ensure you’re moving in a positive direction—i.e., your savings is growing and you’re paying down debt."

  9. Look over your long-term plan. No spring clean—household or money—is ever the same. Why? Because as your just as your home cleaning needs change with the addition of new furniture and decor or even a new address, so do your financial cleaning needs. "A lot can change over the course of a year—and that’s why you should review any investments you have annually at the very least," says Kaplan. "For instance, if you recently met a husband-to-be or decided you want to eventually buy a house, you’ll want to make sure your investment plan reflects that." But that doesn't mean you abandon every financial plan you've set in place. "Your long-term plan most likely accounts for changing conditions, and it should only change course if your goals and needs are significantly different," she advises.