Time to Spring-Clean Your Finances: A Financial Professional's Four Steps to Tidy Them Up

As we approach the midway point of the year, now’s a great time to reflect on your finances and ensure you’re making the most of your workplace benefits.

By taking the time to understand the role that your finances play in various aspects of your life — from work, education and family, to health, retirement and everything in between — you can better position yourself to pursue long-term financial goals.

Consider these four strategies to help move toward a more secure financial future.

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The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.

1. Review your financial picture

Managing your finances can be complex, especially in an uncertain economic environment: Our research shows that the main reason that people are saving in the long term is for retirement (67%).

However, living expenses like food and utilities (50%), health care costs (47%) and rent (43%) are the top barriers in meeting retirement goals.

The first step is to understand where your money is coming from and what it’s going to. Do this by reviewing your income sources, debt payments, credit cards and bills.

Next, assess your recent spending and separate fixed and variable expenses — this would be crucial payments like groceries versus nice-to-haves such as entertainment.

Consider using the 50-30-20 budgeting rule: 50% of your budget would cover needs, 30% wants, and 20% savings and investments.

For help tracking your ongoing spending, online debt calculators, retirement calculators and budgeting apps can be helpful — your workplace benefits may include tools like these that you can use.

Typically, you can also create a budget through your credit card app. And remember, creating a working budget doesn’t happen overnight, so be patient and give yourself room to make adjustments.

2. Consider short- and long-term financial goals

Whether you’re focused on retirement planning or buying a home, setting financial goals can help you achieve what matters most to you.

As a first step, outline your short and long-term financial goals. Are you hoping to start or grow your family this year? Buy a new house? Are you setting aside money for college? What age would you ideally like to retire?

By setting clear goals and creating a realistic road map towards reaching them, you’ll be better equipped to make informed decisions about your finances along the way.

The key is to identify your goals and get started as soon as you can: According to our research, 78% of people are accelerating their financial planning efforts to make up for lost time. The longer you invest, the more opportunity you’ll have to potentially build your nest egg.

3. Lean on workplace benefits

Now that you’ve established your budget and goals, look for opportunities to plug into your workplace benefits to support your progress. If your employer offers a retirement plan such as a 401(k), make sure you’re enrolled.

Some employers also offer a 401(k) match, so it’s important that you’re contributing the right percentage amount to receive it.

Beyond direct contributions to retirement benefits, your workplace may offer additional benefits, such as equity compensation or an employee stock purchase plan (ESPP), that can help you build investments.

If you’re saving for college, paying for childcare or heading back to work, some workplaces offer student loan repayment, flexible spending accounts and return-to-work programs.

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Also, our research shows that nearly 9 in 10 HR leaders offer financial wellness programs — which typically include financial education, coaching and access to resources that help you manage finances, reduce stress and achieve financial goals.

If you aren’t sure where to start, talk to your employer — they can help answer questions and direct you towards educational resources about your workplace benefits.

For more nuanced questions, many companies also offer access to personalized financial guidance such as self-directed financial education, while a financial coach or financial adviser can help you navigate your financial life.

4. Prepare for the unexpected

Remember that life is unpredictable — so if you don’t have one already, consider setting aside even $10 a month to start building up an emergency savings fund.

Keep the money in a separate, easily accessible account, such as a savings account, money market account or CD account, so it’s readily available for sudden large expenses, like a medical emergency or a car repair.

According to a Bankrate report, more than 1 in 3 Americans needed to tap their emergency savings in the past year, but only 16% of U.S. adults say they have enough emergency savings to cover between three and five months’ worth of living expenses, while 27% report having no emergency savings at all.

At the end of the day, taking a holistic approach to your finances can help relieve stress and set you on a path toward a more secure financial future.

This article has been prepared for informational purposes only. It does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley Smith Barney LLC (“Morgan Stanley”) recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Morgan Stanley Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Employee stock plan solutions are offered by E*TRADE Financial Corporate Services, Inc., Solium Capital LLC, Solium Plan Managers LLC and Morgan Stanley Smith Barney LLC (“MSSB”), which are part of Morgan Stanley at Work.

This article may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the material refers to website material of Morgan Stanley Wealth Management, the firm has not reviewed the linked site. Equally, except to the extent to which the material refers to website material of Morgan Stanley Wealth Management, the firm takes no responsibility for, and makes no representations or warranties whatsoever as to, the data and information contained therein. Such address or hyperlink (including addresses or hyperlinks to website material of Morgan Stanley Wealth Management) is provided solely for your convenience and information and the content of the linked site does not in any way form part of this document. Accessing such website or following such link through the material or the website of the firm shall be at your own risk and we shall have no liability arising out of, or in connection with, any such referenced website. CRC#4364373 4/2025

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