Author: Mike Intaglio

Revisit Your Budget

A budget should evolve with your financial situation. If you haven’t reviewed yours in a while, now is the perfect time to take a closer look.

Assess Current Spending

Start by analyzing your recent expenses. Review your bank and credit card statements from the past few months to identify patterns in your spending. Look for areas where you may be overspending, such as dining out, subscription services, or impulse purchases. Small adjustments can make a big difference over time.

Adjust for Life Changes

Major life events—such as a new job, relocation, marriage, or having a child—can significantly impact your financial needs. Ensure your budget reflects these changes and adjust your savings, investments, and expenses accordingly. A well-aligned budget helps keep you financially stable and prepared for the future.

Consolidate Financial Accounts

Managing multiple accounts can become overwhelming. Simplifying your finances by consolidating accounts can make it easier to track your money and reduce unnecessary fees.

Simplify Banking

If you have multiple checking or savings accounts at different banks, consider merging them. Keeping your accounts in one place can help reduce maintenance fees and make money management more convenient. Look for banks that offer high-yield savings accounts or perks that align with your financial goals.

Review Retirement Accounts

If you’ve changed jobs, you may have old 401(k) accounts scattered across different providers. Rolling them into a single IRA or transferring them to your current employer’s plan can make it easier to manage your retirement savings. A consolidated account gives you a clearer picture of your investments and helps you optimize your retirement strategy.

Tackle Debt Strategically

Debt can feel overwhelming, but having a clear repayment strategy can help you regain control and reduce financial stress.

List All Debts

Write down all outstanding debts, including credit cards, student loans, car loans, and personal loans. Note the interest rates and minimum payments for each. Seeing everything in one place allows you to prioritize which debts to tackle first.

Prioritize Payments

Focus on paying off high-interest debt first, such as credit cards, to minimize interest costs over time. If possible, make extra payments toward these balances while maintaining minimum payments on other debts. You can also explore balance transfer options or refinancing opportunities to lower your interest rates and speed up the repayment process.

Organize Financial Documents

Keeping financial documents organized can save time and prevent stress when you need important information quickly.

Digital Storage

Scan essential documents, such as tax returns, insurance policies, and loan agreements, and store them securely online. Cloud storage services with encryption can help protect your information while making it accessible when needed.

Regular Updates

Review and update the beneficiaries on your accounts and insurance policies. Life events like marriage, divorce, or the birth of a child may require changes to ensure your assets go to the right people. Keeping your financial documents up to date helps avoid complications down the line.

Review Subscriptions and Recurring Expenses

Recurring expenses can quietly drain your budget. Regularly reviewing these charges can free up money for savings or other financial goals.

Audit Regular Payments

Go through your bank and credit card statements to identify automatic payments for services you no longer use or need. Canceling unused subscriptions can add up to significant savings over time.

Negotiate Bills

Contact service providers—such as internet, cable, and insurance companies—to see if you can get a better rate. Many companies offer promotions or discounts if you ask. Shopping around for better deals can help lower your monthly expenses without sacrificing quality.

Spring cleaning isn’t just for your home—it’s also a chance to refresh your financial life. By revisiting your budget, consolidating accounts, reducing debt, organizing documents, and cutting unnecessary expenses, you create a more stable and stress-free financial future. Taking the time to make these small but impactful changes now can set you up for long-term success.

Investment advice offered through Integrated Partners, doing business as Pathwise Financial Group, a registered investment advisor.

Start Early by Organizing Your Documents

One of the easiest ways to reduce stress during tax season is to start gathering your documents early. This includes income statements like W-2s and 1099s, as well as mortgage interest forms, student loan interest documents, and investment or retirement account summaries. If you’ve had significant medical expenses, keep receipts for bills that exceed 7.5% of your adjusted gross income (AGI). For self-employed individuals, be sure to document business-related expenses like office supplies, internet usage, and travel costs.

Charitable contributions are another area to track carefully. If you donated goods or money to qualified organizations, ensure you have receipts. The IRS allows you to claim up to $300 for charitable donations even if you take the standard deduction, or up to $600 if you’re married filing jointly. Organizing these documents in a folder—physical or digital—can make filing much smoother.ithout guilt. Plus, understanding where your money goes helps you identify wasteful spending, freeing up funds for what really matters.

Know Your Taxpayer Rights

The IRS Taxpayer Bill of Rights exists to protect and empower you during the filing process. Some key rights include:

• The Right to Be Informed: You’re entitled to clear explanations of IRS notices and tax laws.
• The Right to Privacy: The IRS must act within the law and respect your confidentiality.
• The Right to Challenge the IRS: If you disagree with a decision, you have the right to appeal or request a review.

These rights ensure that taxpayers are treated fairly and can confidently address any issues that may arise. To learn more, visit the IRS’s Taxpayer Bill of Rights. Knowing these rights can provide peace of mind during tax season.

Maximize Deductions and Credits

Tax deductions and credits are powerful tools that can save you money, but they’re often underutilized. Deductions lower your taxable income, while credits reduce the taxes you owe. Common deductions include student loan interest, home office expenses, and significant medical costs.

Some of the most valuable credits include:

• Earned Income Tax Credit (EITC): Designed to benefit low- to moderate-income earners, this credit can be worth up to $7,430 depending on your income and family size.
• Child Tax Credit: Eligible families can receive up to $2,000 per qualifying child under 17.
• Education Credits: The American Opportunity Tax Credit (AOTC) allows eligible students to claim up to $2,500 annually for qualified educational expenses.

Keep an eye out for energy-efficient home improvement credits as well. For example, installing solar panels can qualify you for a credit worth up to 30% of the system cost. Don’t overlook state-specific deductions and credits, which can further reduce your tax liability.

Plan Ahead for Next Year

Tax season is also a chance to plan ahead and adjust your finances. If you received a large refund or owed more than expected this year, consider revising your W-4 form. This form determines how much your employer withholds for taxes, helping you balance your payments throughout the year.

Self-employed individuals should ensure they’re making quarterly estimated payments to avoid underpayment penalties. Setting aside 25-30% of your income in a dedicated savings account can make these payments more manageable.

Additionally, take advantage of tools like Health Savings Accounts (HSAs) and retirement contributions. Contributions to an HSA are tax-deductible and reduce your taxable income, while retirement accounts like a 401(k) or IRA can provide both immediate and long-term tax benefits.

Start Investing for Your Future

You don’t need a lot of money to start investing—what matters most is starting early. Investing allows your money to grow over time, helping you achieve long-term goals like retirement or your child’s education.

Simple Steps to Begin:

• Take Advantage of Employer Plans: If your workplace offers a 401(k) with matching contributions, start there—it’s essentially free money for your future.
• Open a Roth IRA: A Roth IRA allows your money to grow tax-free, making it a great option for young investors. You can start with as little as $50 a month.
• Start Small, Think Big: Investing apps like Acorns or Betterment let you invest spare change or small amounts to get you started.
• Learn as You Go: Investing can feel intimidating, but there are countless resources (and Pathwise advisors) to help you get comfortable.

The earlier you start investing, the more time your money has to grow, thanks to the power of compound interest. By investing even small amounts regularly, you’re laying the foundation for long-term financial security—giving yourself and your family more options and freedom in the future.

Seek Help When Needed

If you’re unsure about how to proceed or feel overwhelmed by the complexity of your taxes, consider seeking professional help. Tax preparers, enrolled agents, and certified public accountants (CPAs) can guide you through the filing process, especially if you have unique financial situations. For simpler returns, reputable tax software provides step-by-step assistance and error-checking features.

Pathwise offers tailored tax support to employees in the groups we manage, helping you navigate the filing process with confidence. Whether it’s answering specific questions or providing tips to maximize your return, our team is here to help. Don’t hesitate to reach out for personalized guidance.

By organizing your documents, understanding your rights, maximizing deductions, and planning ahead, you can approach tax season with confidence. For additional support and resources, visit Pathwise Tax Support.

Investment advice offered through Integrated Partners, doing business as Pathwise Financial Group, a registered investment advisor.