Spring cleaning… who’s got time for that, you might ask? Very few people find satisfaction at the bottom of a laundry pile, but what about spring cleaning your finances?
Staying on top of your financial situation will leave you free from stress throughout the year. So here are 8 simple ways to spring clean your finances, save some money and set yourself on the right path this year.
8 Ways to Spring Clean Your Finances
1. Check Your Bank Balances
That’s right, all of them. When you do a spring clean you start by taking a deep breath, looking around the room and taking stock of the situation… often before rushing to the kitchen for a chocolate biscuit and a cup of tea. Start spring cleaning your finances in exactly the same way.
2. Look Over Your Direct Debits
Do you even know what you’re paying for each month? Lots of us sign up for a variety of direct debits, only to let the money leave our accounts each month without actually checking where it’s going.
You can ask companies to cancel your direct debits, but if a job’s worth doing then it’s always worth doing it yourself.
Look down your list of direct debits, wonder how you’re still paying for breakdown cover for the car that you sold five years ago, and cancel payments for anything that you’re not making use of.
3. Maximise Your Savings
Another great way to spring clean your finances is to maximise your savings. Make sure you are making the most of your savings? If they are earning 0.000000000.1% in interest – step out of your comfort zone and start looking for ways to make your money work harder for you.
There are great investments held within the ISA wrapper which could double the interest you are making in your standard savings account, reap tax benefits and help you beat inflation.
There’s no excuse for letting your savings languish in very low-interest accounts. Move your savings around and don’t forget to maximise your ISA contribution before the end of the tax year.
4. Have A Physical Spring Clean
It can feel refreshing to take stock of your financial situation and to clear away those old direct debits, but few things can beat a physical spring clean with its resulting benefits.
Look around your house, find things that you’re no longer using and sell them for a bit of spare cash. This will give your bank balance a boost.
You can also give unwanted items in good condition to your favourite charity shop. By selling or giving away items you no longer use or want, you will be creating space for yourself and making someone’s day by offering them an item they’ve been searching for.
5. Review Your TV Time
People pay a lot for non-essential subscriptions, but very few drain money as quickly as a satellite TV subscription.
Do you really need to watch endless live reruns of Keeping Up with the Kardashians, or can you watch your favourite shows on demand and save yourself a fortune?
6. Turn Out the Lights
It’s far easier to save energy in spring and summer than it is to be energy-conscious through the winter. Kickstart a new eco-friendly habit by making an extra effort to keep the heating low and the lights off, unless they’re absolutely necessary.
You’ll save money on your energy bills and will be more prepared to think about your energy use when winter rolls back around.
7. Clear the Debt
If you’re trying to pay off debt, spend a day on a little debt prioritising project. Work out which debts are costing you the most in fees and interest, and make those your biggest priority, even if it’s more tempting to clear a smaller credit card.
On the other hand, you can start paying off the smaller debts, if that will give you the much needed inspiration to attack the bigger ones.
If you’re struggling with debt or feel like you don’t know what to do to get out of it, get our eBook on How to Get out of Debt and Stay out Once and for All and let me show you the exact steps I took to get out of £32k worth of debt in 2 years.
8. Treat Yourself
The key to financial success is to not go overboard… or be too restricting! If you stop spending money then you’re likely to splurge when it all overwhelms you.
Don’t be afraid to reward yourself with a small treat or the occasional purchase, but make sure that your bank balance is going up rather than down.
Which of these will you be taking on board in order to spring clean your finances? Have something to add? You can leave your comment below. We’d love to hear from you!
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