spring clean your finances
Spring cleaning our homes is something a lot of us do and it makes us feel happier in our everyday lives, some say it gives us a fresh start. Why not do the same to your finances?
Take the proactive approach…
Income
First port of call is to check all your bank accounts. You’ll be surprised at how many bank accounts people can build up over the years; from your first instant saver to your business bonanza account and all those in between.
A quick rummage through your accounts, draws and folders could reveal some forgotten accounts and more importantly a forgotten money
Once you have all your financial evidence laid out in front of you, add it all up, check what you actually have coming in and benchmark your balance.
Outgoing
What have you got going out? Perhaps there are payments or subscriptions you don’t use anymore that you could cancel.
Hopefully you’re not behind on any payments otherwise this I’m sure is causing you a bit of stress, not to mention the negative effect on your credit rating.
Your bills going out might be compulsory, but could you make things easier for yourself and arrange them to go out on the same day? Or could you get a better deal on your energy bills or phone provider? Something to think about.
Similar with your mortgage, if you haven’t re-mortgage in a while (or ever), you could be missing out on an opportunity to reduce your monthly payments and save money on interest.
Simply knowing the total figures of your monthly incomings and outgoings can help to declutter your mind and ease any money worries.
Future Proof
Now you know what’s coming and going out, you’re able to set a realistic budget moving forward. A framework of what you must spend and what you want to, will keep you within your means and help avoid you going into the red. You can set aside savings for a rainy day or use them to treat yourself to those luxury items once in a while.
If you’re in debt, plan how you’re going to get out of debt. Focus your payments on the larger/higher interest debts first and then the smaller ones.
Aim to improve your credit rating if you’ve had blips in the past. Your future self will thank you for this!
Putting money into a pension or savings account sooner means it can accumulate over time. So, in the future, when you retire you’ll have plenty of money to live off of.
Spring isn’t the only time you should be reviewing your finances, but it is a great place to start. Dusting off the debts and polishing up those payments will help you de-stress and feel more financially secure.
