by Alex Cook
Spring-clean your finances
Springtime is seen as a time for a fresh start and renewal, and with a year like 2020, many of our lives could use a spring clean right now.
1. Use a Mobile App/your Banking Access to analyse where your spend is going
For many of us, we only check our bank balances once or twice a month, and by then, we’ve already overspent. By tracking your spending with an app, you will be able to stick to a budget and identify and eliminate wasteful spending habits in your financial life. Two options to get you started: 22seven and YNAB.
2. Shred old financial documents
Those documents may be a few years old now and not really relevant to you anymore, but, any documentation that has any of your personal information on it needs to be well and truly destroyed as identity theft is continually on the rise.
3. Review your budget
This year has had a serious knock-on many of our ‘normal’ budgets. And now that we are starting to see some sense of normality again, it’s the right time for a review. Examine your spending habits, increase your savings where you can so you ensure that you still make progress toward your long-term financial goals.
4. Review your insurance policies
Most insurance policies should be reviewed annually because, as we know, a lot can happen in a year. Marriage, a new baby, a new job….ahem, a global pandemic… Most of these things have various effects on various insurance policies. Yes, it may be a bit more time you hadn’t originally budgeted for, but all the costs and all the potential savings do add up.
5. Create a debt repayment plan
Start by figuring out what you owe and then either:
– lists your debts from highest to lowest by interest rate – this way you pay off debts that rack up the most in interest first.
– prioritise your smallest debts first. This way you’ll gain momentum as the debts are paid off and that will motivate you to keep going.
Do you need more advice specific to your situation?
Please, contact your financial advisor for assistance.