Leap Day only happens once every four years. While you should be focusing on cleaning up your financial life more frequently than that (ideally going over your plan annually with your financial advisor), you can take advantage of this extra day in 2024 to motivate you.

This Leap Day, seize the opportunity for a financial reset, a chance to sweep away the old and lay a fresh foundation for your future financial well-being. These seven tips will help you get an idea for what you can do this Leap Day, but don't let them limit your imagination!

1. Digitize your financial records

We live in a modern, digitized world. After all, you're not reading this article in a newspaper. In today's digital age, the importance of having organized and secure digital financial records cannot be overstated. As the first step in your financial spring cleaning this Leap Day, consider digitizing your most critical financial documents. This will not only declutter your physical space, but it will also make it easier to manage and access your records when needed.

You can start by scanning or taking clear photographs of crucial documents such as tax returns, insurance policies, and estate planning documents. While it may seem like a lot at first, picking one category of document and fully digitizing those will give you a solid starting point.

After digitization, ensure that your digital records stay secure! Living in the digital age means that cyberattacks are becoming a greater risk every day. Encrypted storage solutions and password managers keep documents both secure and accessible if you somehow lose access to your original copies.

2. Update your budget

An absolute mainstay on any list of financial spring cleaning tips, your budget is probably begging to be updated. A budget that worked perfectly last year may not be as effective today. Income grows, expenses shift, goals evolve, and economic conditions are always in flux. Spring cleaning your finances means giving your budget a thorough refresh.

While there are a plethora of budgeting methodologies you can use, Wealth Enhancement Group Senior Vice President and Financial Advisor Dustin Smith developed a particularly potent budgeting tool called the ABC Budget, which you can use to turbocharge your financial plan through Automated Budgeting Channels.

With the ABC Budget, you can streamline your budgeting using automation. With this smart design, automated processes automatically send your money from one account to the next, so you can direct your income strategically to accelerate savings growth and never miss a bill payment. The ABC Budget isn't your parents' pen-and-paper budget—it's a straightforward, tech-driven solution to modern money management.

3. Conduct a financial tool audit

Many of us use financial tools and apps to manage our finances. From spreadsheets to a dedicated banking app, these tools play a significant role in how we manage our finances. Conducting a financial tool audit means evaluating the apps and tools you currently use for financial management, from budgeting to investing, and determining whether or not those tools are actually helping you.

For instance, let's say you use your bank's app to track your day-to-day expenses, but you route your long-term expenses, such as your mortgage and car payments, directly from your bank account. If your bank's app doesn't offer you the ability to track these large money movements, you might be missing out on seeing your full financial picture at a glance. This could result in misallocated money and inefficient budgeting.

On the other hand, perhaps you use too many financial tools. Some apps charge subscriptions for services. If you find that you don't actually use those services, or that you could access them for free through other means, your financial tool audit could result in real savings.

4. Revisit your estate plan

It's easy to overlook estate planning. Many people don't do it because they believe they'll get to it later—or they're afraid of the questions that might come up. In reality, estate planning isn't that scary, and it's absolutely important to do it as early as possible.

Life changes, such as marriage, divorce, or the birth of a child, often cause concurrent shifts in your financial plan. However, these events are also quite demanding, so the financial implications can fall by the wayside in the moment. Financial spring cleaning for Leap Day offers the perfect opportunity to revisit and possibly update your estate plan.

If you don't have an estate plan in place, now is the time to start. Estate planning isn't just for the wealthy— it's a crucial part of anyone's plan who wants to ensure that their wishes are followed after they're gone. If you want help setting up or updating your estate plan, reach out to a Wealth Enhancement Group financial advisor for assistance.

5. Implement a financial mindfulness routine

So far, the items on this list have been fairly tactile. However, our mindsets can be our strongest levers when it comes to financial cleanup. Financial mindfulness involves being fully present and aware of your financial habits and decisions. In the long-run, this mindfulness can lead to more conscious and intentional money management. Here's how it works:

First, start by reviewing your financial transactions and reflecting on your spending and saving patterns. Ask yourself if these patterns reflect your long-term financial goals and underlying values.

Then, make it a habit by periodically revisiting your financial transactions and money mindset. Eventually, this practice can reinforce good money habits and illuminate areas for improvement.

6. Plan a financial date night

This year, Leap Day falls on a Thursday – perfect for a financial planning date night. Setting aside a specific time to discuss finances with your partner or family can be a powerful way to ensure everyone is aligned with each other's financial goals.

A financial date night is a designated time to talk about money matters in a relaxed, positive setting. Be sure to pick a time of relative calm, and ensure that you invite the right parties. You can also consider setting some ground rules to make sure the conversation goes smoothly:

• No interrupting when another person is speaking.
• All perspectives are valid and worthy of being heard.
• What is discussed here stays here.
• Any questions are welcome at any time.

Keep the atmosphere of your date night positive and supportive, focusing on shared goals and how you can work together to achieve them. The objective is to foster open communication about finances, to ultimately reduce stress and build stronger relationships.

7. Reevaluate your financial goals

Finally, no Leap Day spring cleaning would be complete without a reevaluation of your financial goals as a whole. Like your budget, your goals can change as your aspirations and life conditions shift, so it's important to revisit them regularly.

To reevaluate your financial goals, you can follow this simple process:

1. First, reflect on the milestones you already have in place. These could range from saving up enough for the down payment of a home, to setting aside a specific amount of money for travel or other personal passions.
2. Next, consider if these milestones and goals are still important to you. If they are, continue to the next step. If they're not, take this time to come up with new goals.
3. Third, quantify your goals if you haven't already. If you've already done this, check your numbers to see if you need to adjust them up or down. For example, if you've been aiming for a target down payment on a house, but the housing market in your desired area has cooled off since you came up with that number, you may be able to change your target.
4. Finally, prioritize your goals. If you have multiple financial objectives, it can be easy to stretch yourself too thin. It's critical to recognize that resource allocation often requires trade-offs and strategic decision-making.

Armed with a refreshed set of goals, you can then adjust your financial plan accordingly. This might involve tweaking your investment strategy or modifying your savings approach.

Plan for a Leap Day like no other

An extra day of the year might not seem like much, but leveraged correctly, it can have a profound impact on your life. This Leap Day, take advantage of your extra time by following the tips provided to you in this article. From digitizing your financial records to reevaluating your financial objectives, each step here is a building block you can use to craft a more fulfilling financial future.

As you look forward to the year to come, remember that the Wealth Enhancement team is always here to support you. If you need help implementing any of the items on this list, or have any other financial planning needs, reach out to an advisor today for a free, no-obligation meeting.