7 Smart Financial Planning Moves to Make in March
As winter comes to an end and spring approaches, March is the perfect time to pause and take a closer look at your finances. With tax season underway and the year beginning to take shape, many households finally have a clearer picture of their income, spending habits, and financial priorities for the year ahead. A quick financial check-in during this time can help you stay organized, reduce stress around taxes, and make sure you are still on track toward your long-term financial goals.
One of the most important tasks in March is organizing your tax documents. By this point in the year, most tax forms should have arrived, including W-2s from employers, 1099s for income, and 1099-DIV or 1099-INT forms for investment earnings. You may also receive forms related to mortgage interest, student loan interest, or other deductions. Gathering these documents early and sending them to your CPA or financial advisor allows plenty of time to review everything carefully before the April filing deadline and helps avoid last-minute surprises.
March is also an excellent opportunity to consider last-minute retirement contributions. Many investors are still able to contribute to certain accounts for the previous tax year until the tax filing deadline. This includes traditional IRAs, Roth IRAs, and Health Savings Accounts. Making contributions now can help reduce taxable income or strengthen your long-term retirement savings strategy. Even if you already contribute regularly through a workplace retirement plan, reviewing whether you can maximize these accounts can be a valuable tax planning move.
Another smart step this time of year is reviewing your investment portfolio. The first quarter of the year often brings market volatility, so taking time in March to review your holdings and rebalance if necessary helps ensure that your investments still align with your financial goals and risk tolerance.
March is also a great time to revisit your financial goals for the year. The momentum of New Year’s resolutions has often faded by now, which makes it a realistic moment to evaluate whether your goals still make sense. Reviewing your monthly savings rate, debt repayment progress, emergency fund contributions, and planned major expenses can help you make adjustments early rather than waiting until later in the year. Small changes now can have a meaningful impact on your financial progress over time.
In addition, reviewing your tax withholding can be a valuable step, especially if you received a large refund or owed more than expected when filing your last tax return. Adjusting your withholding can help improve your monthly cash flow while ensuring that you are setting aside the right amount for taxes throughout the year. A quick conversation with a financial advisor or tax professional can help determine whether your current withholding strategy still makes sense.
Finally, it can be helpful to start planning for seasonal expenses that often arise in the coming months. Spring and summer frequently bring travel, weddings, home improvement projects, and other large purchases. Anticipating these costs ahead of time allows you to build them into your budget and avoid relying on credit cards sky rocketing and last-minute financial stress.
Financial planning does not need to be complicated, but it does require consistent attention. Taking a little time in March to complete a simple financial checklist can help you stay organized during tax season, make thoughtful investment decisions, and keep your financial goals moving in the right direction. Email info@shermanwealth.com if you are interested in fine tuning your financial plan this spring season or schedule a complimentary intro call here.