How to Spring Clean Your Finances
Whenever Spring comes around most people feel the urge to give their lives a little bit of a declutter. Whether that is organising your wardrobe or rearranging your lounge, there is usually loads to get done. But what most people tend to forget is that it is the perfect time to spring clean your finances.
Why should you spring clean your finances?
A spring clean of your finances can be exactly what you need to help save money, put your mind at rest and to stop stressing about where your money is going each month. Even if you’re one that is reasonably sensible with money, it’s always to see if there are any changes to be made.
Review your budget
To get the best understanding of your finances a little better, first figure out where your money is going. Work out how much you get paid after tax. Then work out how much of your money goes towards necessities such as, rent, mortgage, gas, electricity and water costs. Or whatever you think is a necessity for you to pay monthly.
Sort out your bills!
When it comes to your bills, it is vital that you have a firm understanding of your outgoings. As we’ve previously drawn upon necessities when it comes to bills, there may be more. Such as your broadband and mobile phone bill, for example. Even though all these bills are paid monthly, that doesn’t mean that you can not cut costs on them. Look out for deals on all your bills as saving just £5 a month can add up to £60 for the whole year.
Take control of your debts
If you have a credit card, loan, or overdraft, why not take the opportunity to see if you are really getting the best deal out there. Transferring debt can be a really great way to help save a little extra money per month, but make sure you always understand the risks involved first. If you feel like your debt is getting hard to handle and is starting to affect your wellbeing, it may be worth speaking to a debt charity such as the Money Advice Service who can help you out, free of charge.
Work on reducing your outgoings
It can often be hard to break spending habits. But attempting to reduce your outgoings can really help save money each month. Reducing the amount of energy you use around the house could really have a significant impact on your monthly bills, and it’s really easy to get into the habit of it. Using energy-saving light bulbs and avoiding using the tumble dryer, or downloading an app to control your heating when you are out of the house are just a few of the ways in which you can save money as well as helping the environment.
Thoughts?
Don’t forget, spring is not the only time it might be worthwhile cleaning out your finances. If you make a conscious effort to make these changes as little as twice a year, you could potentially save yourself thousands of pounds in the process.