11 Tips for Spring Cleaning Your Finances
As the weather warms up, it’s a natural time to think about spring cleaning. But don't just focus on your house—spring is also a great motivator to give your finances a good tidy-up. Use these 11 tips to dust off your financial goals and prepare for a season of success.
1. Shop Around for Better Deals
Insurances, Phone, and Energy: Service providers often reward new customers over existing ones. Make it an annual habit to shop around for better deals on your insurance, phone, and energy bills. Your loyalty might not be paying off!
Compare Your Mortgage: The same is true for your home loan. Annually review the interest rate and features of your mortgage. Calling me makes it easier to compare offers from a range of lenders and potentially save you hundreds or even thousands of dollars per year.
2. Cut Unnecessary Spending
Cancel Subscriptions: Review your monthly bills and cancel or pause any unused streaming services, apps, or magazine subscriptions. Even small monthly fees quickly add up.
Reduce Eating Out: Preparing your own meals at home saves substantial money, whether it’s planning your weekly groceries or packing your lunch. Cutting back on those daily coffee runs also adds up more than you think.
Avoid Impulse Buying: To put yourself back in charge of your purchasing decisions, consider waiting 24 hours or longer before making any non-essential purchases. This breathing room will help you make more informed decisions.
3. Get Your Financial House in Order
Create a Budget: A clear budget is key to financial freedom. Tracking your spending helps you understand where your money goes and identify areas where you can cut back. It provides the clarity needed to set and achieve long-term goals.
Evaluate and Pay Down Debt: Start by looking at your total debt and the interest you’re paying, including credit cards and Buy Now Pay Later arrangements. Make a plan this spring to aggressively pay off high-interest debt. This might involve consolidating loans or shopping around for a lower rate.
Automate Savings: If you have a savings goal, set up automatic transfers from your everyday account to your savings account on payday. This ensures consistent savings and prevents you from dipping into your fund.
Top Up Your Emergency Fund: An emergency fund is a financial safety net for urgent or unexpected costs like car repairs or medical bills. Even if you can only save a little, contribute what you can to a separate account for greater peace of mind.
4. Review Your Long-Term Security
Check Your Superannuation (Retirement): Annually review your retirement fund, ensure you are in the right type of fund, and update your beneficiaries. Also, consolidate any old accounts from previous employers to avoid fees eating away at your retirement savings.
Evaluate Your Goals: While spring cleaning your finances, take the time to check in on your current financial goals. See how you’re tracking and set new goals for the months ahead. Treating the new spring season as a fresh start can give you the motivation you need to achieve your short or long-term financial dreams.
Spring is an excellent time to plan to pay down debts, reduce unnecessary spending, and set some key financial goals!