It’s finally spring! While you get stuck into spring cleaning the house, it is also the perfect time to spring clean your finances. It’s all about getting rid of the clutter and simplifying your finances. It is also a great time to re-evaluate your goals, as they are ever changing and growing.
Evaluate your loan and credit card balances
It’s the perfect time to stop avoiding your debt. Take a look at the statements on each of your loans or credit cards and evaluate whether you are on track to paying them off. Are you paying them on time? Are you paying more than just the interest incurred? Are you prioritising your debt payments?
Evaluate which loan has the highest interest rates and shortest terms. Allow more money towards these loans every month. Set up automatic payments so you pay your debt on time, before you spend all your money on other expenses.
If you have several high interest loans that are not diminishing, then you could consider consolidating your debt. Debt consolidation could take most of the stress out of your debt, with only one payment which is less frequent and a smaller amount.
Review your bills
This includes all bills such, power, cable, groceries and any other payments or subscriptions. Review these bills to ensure you are not paying for things you no longer need. Maybe you watch all your favourite TV shows online so no longer need a Sky subscription.
What are those food items you buy that always end up going to waste? Cut any unnecessary costs out of your budget and calculate how much you save.
An important bill to review is your insurance. Is the amount you’re paying towards your insurance company justified? If not, lower your coverage to suit your lifestyle and be sure to save an emergency fund!
Everyone hates paperwork and many of us have overflowing folders and filing cabinets full of unorganised and unnecessary documents. This financial clutter makes for messy finances and is no longer necessary in this decade. Sort your paper work by shredding any documents you no longer need then scan important documents to save to your computer or laptop but be sure to back them up! From now on ask for your bills and statements to be sent via email to stop the paperwork from piling up.
Disclaimer: The above information is general in nature and not intended to be financial advice. You should consider seeking professional advice before following any suggestions in this blog/website.