Community Resource Federal Credit Union
Community Resource Federal Credit Union

Just as the arrival of spring prompts many of us to deep-clean our homes and clear out clutter, it’s also the perfect time to clean up and rejuvenate our financial situation. A seasonal financial review can offer a fresh perspective, clear away money stress, and prepare you for a prosperous year. Consider this the equivalent of opening your financial windows and letting in the fresh air.

In this article, we’ll guide you through 5 essential steps to spring-clean your finances: creating or revising your budget, evaluating your savings, paying down debt, reviewing your credit report, and planning for the future. We’ll also introduce you to an invaluable resource available to all our credit union members – the Free Financial Review – and explain how this service can help you optimize your financial health.

So, grab your financial mop and bucket. It’s time to start your financial spring cleaning!


1. Create or Revise Your Budget

Just as a clean house provides a clearer mind, an organized and up-to-date budget provides a clearer financial picture. Maintaining a budget is one of the foundational pillars of financial health. It helps you keep track of where your money is going and gives you a roadmap to guide your financial decisions.

Spring is the perfect time to start if you’ve never created a budget. Begin by listing all your sources of income and then categorize your expenses. Consider all aspects, from fixed necessities like mortgage or rent payments, utility bills, and groceries, to variable expenses such as dining out, entertainment, and shopping. Don’t forget to include expenses that don’t occur monthly, such as annual insurance premiums or vehicle maintenance.

Already have a budget? Great, but remember that a budget isn’t a one-and-done deal. It’s a living document that should evolve as your financial circumstances change. Perhaps you’ve recently paid off a car loan, received a raise, or added a new member to your family. Adjust your budget accordingly to reflect these changes.

Next, set financial goals, both short-term (like saving for a vacation) and long-term (like retirement or college education). Allocate a portion of your budget to work towards these goals. This can help you prioritize your spending and make more intentional choices about where your money goes.

Remember, the purpose of a budget isn’t to restrict your spending but to give you control over your money and ensure you’re using it in ways that align with your financial goals. Creating or revising a budget is the first step this spring to a financially healthier you.


2. Evaluate Your Savings

Spring cleaning isn’t just about tidying up; it’s also about improving your living space. Similarly, evaluating your savings is critical to enhancing your financial health. Savings form the bedrock of your financial security and stability, providing a safety net in times of unexpected expenses and paving the way for future financial goals.

First and foremost, consider your emergency fund. Financial experts typically recommend having enough in your emergency fund to cover three to six months’ worth of living expenses. This protects you against unforeseen circumstances such as job loss, medical emergencies, or urgent home repairs. If you haven’t built up your emergency fund yet, or if it’s fallen a bit short, now is the time to focus on growing it.

Next, take a look at your long-term savings. Are you saving for retirement, a down payment on a house, or your children’s college education? Consider whether your current savings plan will help you achieve these goals in your desired timeframe. If not, you might need to increase the amount you’re putting away each month.

One effective way to boost savings is by setting up automatic transfers from your checking account to your savings account. This “set it and forget it” method ensures you’re consistently contributing to your savings without even having to think about it. Additionally, there are numerous financial apps available that can help you save money. Some round up your purchases to the nearest dollar and deposit the difference into a savings account, while others analyze your spending habits and automatically save an affordable amount.

Evaluating and boosting your savings can provide the peace of mind that comes with financial security and can put you on the path toward achieving your long-term goals.

3. Pay Down Debt

Debt can weigh heavily on your financial health, and reducing it should be a key part of your financial spring cleaning. High levels of debt can strain your monthly budget, limit your savings potential, and negatively impact your credit score, making it harder and potentially more expensive to borrow money in the future.

To tackle your debt, start by taking stock of everything you owe. List out each debt, noting the creditor, total amount owed, monthly payment, and interest rate. This overview will give you a clear picture of your current debt situation.

Next, consider your strategy for debt repayment. One popular method is the ‘avalanche’ method, where you focus on paying down the debt with the highest interest rate first while making minimum payments on the rest. This approach can save you money over time, as it reduces the amount of interest you’ll end up paying.

Alternatively, the ‘snowball’ method involves focusing on the smallest debt first while maintaining minimum payments on others. The mental boost from paying off a debt can provide motivation to tackle larger debts.

You might consider debt consolidation if you have multiple debts, particularly high-interest credit card debts. This involves combining all your debts into one loan with a lower interest rate, making it easier to manage and potentially saving you money.

Remember, paying down debt is a journey that requires consistency and patience. Every step you take towards reducing your debt contributes to your overall financial health and brings you closer to financial freedom.

4. Review Your Credit Report

Your credit report is a critical element of your financial health. It’s a record of your credit history that lenders, landlords, and even potential employers may check to assess your creditworthiness. Regularly reviewing your credit report can help you understand where you stand financially and allow you to spot any potential issues, such as discrepancies or signs of identity theft.

Under U.S. law, you’re entitled to a free copy of your credit report from each of the three major credit bureaus — Experian, Equifax, and TransUnion — once every 12 months. You can request these reports through, the bureaus’ official site.

When reviewing your credit report, look for any inaccuracies, such as payments marked late when you paid on time, accounts you don’t recognize, or personal information errors. If you find any, you should dispute them with the credit bureau, as they can negatively impact your credit score.

Your credit score, a numerical representation of your creditworthiness, is another key component to pay attention to. If your credit score isn’t as strong as you’d like, there are steps you can take to improve it. Regular, on-time payments are the most influential factor in credit scoring, so set up automatic payments or reminders to ensure you pay on time. Reducing your credit utilization — the ratio of your outstanding balance to your credit limit — can also boost your score.

Remember, improving your credit score is a marathon, not a sprint, and it requires consistent, responsible credit behavior over time. Regularly reviewing your credit report and understanding your credit score are significant steps toward achieving and maintaining good credit health.

5. Plan for the Future

In the midst of spring cleaning your finances, don’t overlook the importance of planning for the future. While immediate financial responsibilities often take precedence, long-term financial health, particularly retirement, is essential to comprehensive financial planning.

Planning for the future, especially retirement, can often feel overwhelming, but starting early and contributing consistently is key. Thanks to the power of compounding, even small, regular contributions can accumulate into a substantial sum over time.

When it comes to saving for retirement, you have several options, each with its own benefits and considerations. Employer-sponsored 401(k) plans are a common choice. These plans often include matching contributions from your employer, effectively providing free money toward your retirement savings.

Individual Retirement Accounts (IRAs), both Traditional and Roth, are another popular option. These accounts provide tax advantages that can help grow your savings more efficiently. Traditional IRAs offer tax deductions on contributions, while Roth IRAs allow for tax-free withdrawals in retirement.

Choosing between these options depends on factors like your income level, tax situation, and retirement goals. The important thing is to start saving and investing for retirement as early and consistently as possible.

Taking the time to plan for your future now can ensure a comfortable and secure retirement. And as you review and update your long-term financial plans, remember that your credit union is here to help, offering valuable resources and personalized advice to guide your journey.

Let us Help You!

Spring cleaning isn’t just about tidying up your physical spaces but also about decluttering and optimizing your financial landscape. One of the most effective ways to do this is through a regular financial review, and there’s no better time to start than now.

Community Resource FCU understands the importance of financial wellness and is committed to supporting members in achieving their financial goals. As part of this commitment, we offer all our members a Free Financial Review service. This comprehensive review can help identify ways to save money, improve your credit score, and enhance your overall financial health.

We strongly encourage you to take advantage of this valuable service. Scheduling your Free Financial Review is easy – simply give us a call or stop by a branch in person. Our team of experienced financial advisors will guide you through the review process, offering personalized advice based on your unique financial situation.

The benefits of this review go beyond just numbers on a page. It’s about taking control of your financial health, planning for the future, and making your money work for you.


Spring is a season of renewal and growth – an ideal time to get your finances in order and set the stage for a prosperous future. Take the first step towards financial fitness by scheduling your Free Financial Review today. Our credit union is more than a financial institution; we are your partner in achieving financial health and stability. Start your financial spring cleaning now, and let us guide you toward a brighter financial future.