Believe it or not, we are now half way into the year and while the weather is playing hard to get we are officially in the Spring/Summer period. It’s easy to set goals at the beginning of the year but it’s important we check in on our progress from time to time so we don’t repeat the same financial goals each year. Here are 5 ways to spring clean your finances.
1. Review Your Budget Process
How you budget is really important because if you don’t enjoy the method you choose, it’s likely you won’t stick to your budget. Are you happy with how you are currently budgeting or would you like to try something new?
Are you spending in line with your income? Has your expenses increased or decreased since the year started? Regardless of whether or not you answer yes or no to these questions it’s important you also ask yourself why. Why are you spending more/less now? Identify the reason and whether it is justifiable. If you find you don’t have a good enough answer then think about making necessary changes to get you back on track.
Related: The Envelope System
2. Prioritise Debt
If you don’t have any debt then you can skip straight on to number 3. If this is the year you said you would start to clear off your debt, what steps have you taken to ensure that happens? It’s understandable that it can take a while but as long as you are working on getting rid of your debt then there is no need to panic.
If you haven’t made debt your priority yet, try rolling all your debt into one by getting one loan instead of paying off multiple companies. This is called debt consolidation. It can give you a sense of organisation and control over your financial situation.
3. Prioritise Savings
Whether you save 10% or 50% of what you earn, saving is a habit we should exercise regularly and as long as we budget there is no reason to feel as if you’re missing out on your money. We compiled a list of different types of savings accounts; this will help you work out what is best for you. Also, make sure you’re happy with the interest you’re getting on your savings account. Always strive to get the most out of your money.
Saving a little amount here or there may not seem worth it but when a rainy day comes, you’ll be thankful for the total you’ve amassed. One of the best feelings is knowing that you have some financial security so if you don’t have debt to pay off, keep saving!
4. Review Current Accounts
If money is going in and money is coming out of our current accounts it’s easy to feel as if there is no need to check on your transactions but there is more we can do. A top priority should be having a look at your statements to make sure that there aren’t any cheeky outgoings you didn’t sign up for.
Furthermore, review any standing orders or direct debits you may have stopped and assess whether any of the current ones are worth the expense.
5. Compare Other Deals
Have a look around comparison websites to make sure you are getting the best deal for your money. After all, you work so hard for your money you might as well make it work for you too. From 0% interest on overdrafts to switching to a bank that offers you better benefits, there’s a lot to gain if you have search around the web.
This post was written by Bola
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