Wellness Blog

Blog Post


It’s the Season to Spring Clean Your Finances

Spring is the time when flowers start blooming, grass turns greener and, for some reason, “spring cleaning” comes to mind. When I think “spring cleaning,” I don’t normally think of cleaning my home (although I probably should), I think of organizing my paperwork. It might be because I have finished my income taxes and I can purge all that paperwork. 

So, what do I do when I spring clean my finances?

I start with my paper work. I usually keep at least one year of old bills and at least 7 years of taxes (okay I keep my tax information forever). It feels great to be able to destroy those old paid bills.

I then look at what debts I have, and the interest rates on those debts. If I have a balance on a high interest credit card, I am looking at getting rid of the balance of that card by either paying it off (option #1) or transferring that balance to a much lower interest loan or line of credit (option #2). Why do I have that high interest credit card anyway? Maybe, it’s in my best interest to get rid of that card.

I look at what I am doing for my retirement. Should I make an appointment with my financial planner? Am I putting enough away for my retirement? Should I be contributing more on a monthly basis to my RRSPs?

I also use this time to get a copy of my credit rating. If I am going to be making any major purchases in the next year, I want my credit rating to reflect properly so I can get the best interest rate available to me.

Next up… a review of my spending habits and future needs and wants. Am I planning a vacation? How much do I need to change my budget to account for this or any other items I want to spend my money on?

And finally, if I am really enthusiastic, I start cleaning my apartment.