3 Ways You Can Spring Clean Your Finances This Year
As temperatures warm up and many people begin decluttering and spring cleaning their homes, there is one area that many consumers often forget to tackle: their finances. While under half of Britons use financial planning in some form to keep their finances on track, many financial coaches and experts will tell you that regular reviews are key to maintaining a financially healthy lifestyle. Going through a few simple steps and decluttering your finances can have a long-lasting and immediate impact on your bank accounts, financial goals, and even your stress levels.
Write Down Your Bad Financial Habits-Honestly
Overspending can make it quite difficult to stick to your budget and financial goals. Spring cleaning your finances can be a good time to review your spending habits over the year so far. A good tip is to print out your bank statements and highlight any recurring discretionary spending. Use this to spot spending patterns and assess how you can improve them going forward. The key here is to be objective and honest. Keep in mind the reason why you are doing this. Spotting unnecessary spending habits or financial pitfalls allows you to save money and get closer to your financial goals.
Are You Using Your Overdraft?
While most banks have promotions for interest-free overdraft periods, a reliance on overdrafts can quickly become a bad financial habit as you get used to spending more than your monthly income. If you are using your overdraft, this is a good time to make a plan to get out of it. Some other options can include the use of a 0 percent interest credit card or a money transfer credit card. You can also use a personal loan if the interest rates are lower than your overdraft rates (most tend to be lower).
Clear Out Those Outdated Direct Debits And Subscriptions
This is a mistake that many consumers are notorious for committing. Like forgetting to switch a light off in the home, many of us can be guilty of subscribing to magazines or other things for a trial period and forgetting to cancel that direct debit. Similarly, you may have direct debits and standing orders for services you are no longer using. This is also a good time to review your outgoings and just how relevant they are to your lifestyle.
Finally, take the time to organise your finances. Having your financial paperwork organised can help you make clearer and more informed financial decisions. Get rid of outdated financial statements. For digital copies, create dedicated folders for your tax, employment, and banking documents.
The months of March and April often signal the start of brighter, sunnier days. It also presents the perfect opportunity to reassess and readjust your finances. With moves like these, you can begin the new season (and new tax year) on a stronger foot.