4 Ways to Spring Cleaning Your Finances

Ever considered taking a break from your regular schedule to tighten up your personal finances? Perhaps you could call it a “Financial Cleaning Day” during the spring season?

Although it might not be the most exciting day you have ever had, it will still be worthwhile having the thought of saving significant amount of money. Your “financial cleaning day” should be a weekday so you can phone businesses that are easier to reach during business hours, such as banks, credit card companies, health insurance, and other service providers. Additionally, have close to hand all of your resources, including your bank statements, credit card statements, mortgage statements, and most recent tax return. Since there are so many things you can do online, having internet connectivity is extremely crucial.

Reaching the Goal

What then are your goals? There are, of course, two sides to every coin. The primary goal is to increase your income by saving more and spending less of it, without turning your life into a miserable exercise in frugal living. The second is to look into some less expensive alternatives, if any, to pay for some necessities of life.

Start by evaluating your monthly budget, or creating one if required, so you can identify the major expenditures before attempting to reduce them. Consider your electric bills. Aside from giving you a discount for bundling your gas and electricity, there are power companies that will let you pay them by pre-set monthly direct debits, avoiding the shock of a large quarterly hit and easing your cash flow.

A great budgeting strategy can include setting monthly payments or savings goals. In fact, by predicting the cost and sending monthly instalments to a different savings account, you may even design your own monthly debit system for significant expenses like school tuition, yearly vacations, and Christmas. Most likely, the transactions can be done automatically for you by your bank.

One positive outcome of a budget review would be to save an additional 1% of your pay, or simply $1 out of every $100 you earn. Save for a significant goal like an international trip, new carpets, or as a reserve fund if you can achieve it comfortably by eliminating one or two wasteful costs. Unanticipated events, such as a burst water heater or an unexpected increase in the mortgage payment, can ruin even the best budgets.

Smart Moves

You should still have a few hours of your Financial Health Day left after finishing your budget analysis, setting up new direct debits, and possibly opening one or more new dedicated savings accounts.

Credit Cards

Many people’s finances are plagued by credit card debt. Change to a less expensive card to see if you can save. Are you paying off your credit card during the grace period? Do you use rewards program that you pay for if you have them if you do? It might pay to look at your possibilities since several supermarket reward programs now provide a “double reward”. On numerous websites, including creditcard.com, you can compare credit cards. If you do decide to switch card issuers, you can find one that will reward you by waiving interest charges for the first three to six months.

Health Insurance

After your family’s circumstances may have changed after you purchased the plan or the market may provide newer, more flexible options, it is also important to check your private health insurance plan. According to choice health insurance specialists, comparing and transferring funds can result in savings of up to $932.

Home Loan

Last but not least, when was the last time you looked through your mortgage and current interest rate? It is wise to examine your house loan once a year as a general guideline. It’s a good idea to periodically check your mortgage to determine whether it still fits your needs in terms of spending and lifestyle, or whether it’s time to consider other possibilities.

Everything finished? Congratulations on improving your financial situation!

Book your Annual Wealth Review today!

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