Spring is an ideal time to assess your finances post-tax filing, says Joseph Eschleman, president of Towerpoint Wealth.
SACRAMENTO, Calif. — Financial advisors say spring is a good time to take stock of your finances and make adjustments for the months ahead.
For many people, filing taxes offers what Joseph Eschleman, CIMA, president of Towerpoint Wealth, describes as a “financial report card.”
“A lot of ABC10 viewers have already filed their taxes or close to filing taxes. That generally gives an overall what we call ‘financial report card’ for people once they’ve got their ducks in a row as far as getting their financial and tax information into the IRS, to the Franchise Tax Board,” Eschleman said.
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Why spring could be the time to reset your budget and finances
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That review can help people better understand last year’s finances and decide whether to adjust tax withholdings or estimated payments going forward.
Eschleman said spring is also a time to think ahead, especially as summer approaches.
“From more of a forward thinking approach — with it being April now and the spring cleaning of your finances — is thinking about the front windshield, so to speak, in terms of planning for summer spending and travel and with kids in school transitions as well. It’s a great time to be thinking about all of these things,” he said.
Another key step is reviewing recurring expenses. Looking back at the last two or three months of bank and credit card statements can help identify subscriptions or services that are no longer needed.
“There’s not necessarily what we call a spending problem, but they sometimes have a subscription problem,” Eschleman said.
Resetting a budget is also part of the process. Eschleman recommends separating fixed and variable expenses and using a 50-30-20 approach — 50% for essential needs, 30% for wants and 20% for saving, investing and paying down debt.
“A budget doesn’t necessarily need to be a complicated Excel spreadsheet. It just needs to be clear. It needs to be intentional,” he said.
Common mistakes to avoid include not tracking spending, making emotional or impulse purchases, ignoring irregular expenses like travel or holidays, and allowing lifestyle creep —when spending rises along with income.
Spring cleaning your finances starts with cutting waste and resetting your budget