1. Re-evaluate Your Spending Habits

Consumer spending patterns have experienced significant shifts in recent years. The Federal Reserve Bank of St. Louis reports that during the pandemic,spending on travel,hotels,restaurants,and bars decreased,while spending on groceries and beverages increased. Subsequently, a surge in “revenge spending” occurred as people resumed travel and leisure activities.

Now, many individuals may be tightening their belts onc again. I think people are slowing down on spending right now to see how things shake out with the new administration, said Shea Newton, a certified financial planner and president of financial Journey in Pensacola, florida.

Action Item: Create a detailed spending plan to track where your money is going. This will help you identify areas where you can cut back and save.

» MORE: How to create a spending plan

2. Identify Easy Ways to Cut Expenses

Recurring expenses can drain your finances without you even realizing it.These are prime candidates for review. Consider canceling unused streaming subscriptions or switching to a more affordable cell phone plan with similar coverage.

Curtis Bailey, a certified financial planner and founder of Quiet Wealth Management in Cincinnati, recommends reviewing your credit card spending from the previous year, along with the rewards earned. Did you maximize your reward-earning potential and redeem those rewards in valuable ways? If not, it might be time to apply for a new card, he said.

Action Item: List all your recurring expenses and identify at least three that you can eliminate or reduce.

3. Revisit Your Financial Goals

Financial priorities can change rapidly. Finances is one of those things where there’s always 12 decisions to be made at one given time, said Andrew Mitchell, a financial advisor at Fiduciary Financial Advisors in Grand Rapids, Michigan.

For significant financial goals, Mitchell advises looking beyond immediate needs and considering future aspirations. If you’re thinking far enough into the future and preparing, even in a scenario where there’s these big things going on, you have cash on hand to be able to deal with those situations, he said.

Action Item: Write down your short-term and long-term financial goals. Assess whether your current strategies are aligned with achieving these goals.

» LISTEN: NerdWallet’s Smart Money podcast: How to set goals you can actually achieve

4. Evaluate Your Insurance Coverage

Recent natural disasters have impacted numerous communities, leaving many residents grappling with significant costs. Noah Damsky, founder and wealth advisor at Marina Wealth Advisors in Los Angeles, recommends reviewing your homeowners insurance policy every few years. Increased labor and building material costs can considerably increase the expense of repairing or rebuilding your home.

Damsky, who purchased his home in 2020, recently reassessed his insurance policy. I’m just a few miles away from where the wildfires were in L.A., he said.

Shop around to compare coverage and costs from different insurance providers. Also, ensure that you have adequate coverage for any recently acquired luxury items, such as jewelry or art.

Action Item: Contact your insurance provider to review your current policies and explore options for better coverage or lower premiums.

» MORE: NerdWallet’s guide to homeowners insurance

FAQ: Financial Spring Cleaning

• Q: Why is it important to review my spending habits?
• A: Reviewing your spending helps you identify areas where you can cut back and save money.
• Q: How often should I review my insurance coverage?
• A: It’s recommended to review your homeowners insurance policy every few years, or after making significant home improvements or acquiring valuable items.
• Q: What are some easy ways to cut expenses?
• A: Consider canceling unused subscriptions, switching to a more affordable cell phone plan, and negotiating lower rates for services.