Tidying up your money is a bit like the spring cleaning Mum would do a couple of times a year. She was like a mini whirlwind with the duster and the vacuum cleaner. Anything that moved got cleaned, and anything that hadn’t been used since the last spring clean went out the door to the local charity shop or dump. I still do that now…. Well maybe not the cleaning bit, but certainly the decluttering has stuck with me.
So how do you tidy up your money and declutter your finances?
Here are 7 steps to help
- How many bank accounts and credit cards do you have? Maybe you could consolidate a few and utilize them better by having them linked so you can maximize interest earned on savings accounts and minimize interest paid on loan accounts. I have nothing against having separate accounts for various purposes but you probably don’t need 10 different bank accounts, 4 credit cards and 8 store cards
- Tidy your money and save the trees. If you still receive paper bank statements, credit card statements, and utility bills, do you really need the paper? Can you get them emailed instead? You can still (and you should) check your statements online. Think of all the time you’ll save by not having to file all that paper somewhere.
- There are lots of expenses that we pay regularly, so automate them. If your power company offers a discount for early payment for example, take advantage of it, and set up a direct debit. This way you can set and forget. Pay your insurances, rent, mortgage, phone, power, and subscriptions by automatic payment so you don’t have to think about them every month. There’s nothing worse than having something cut off (or incurring a penalty) simply because you forgot to process the payment.
- Tidy your money by acquiring less stuff. More stuff means more cleaning, more maintenance and more packing every time you move house. Think what else you can do with the money: Accumulate it in your savings account. Have a trip away. Buy something you really want and will appreciate much longer than lots of small bits and bobs.
- Have a good old-fashioned clean out. Clean out the garage, the basement, the wardrobe, under the bed. See what’s lurking in the back of the kitchen cupboards. If it’s of no use to you, it may be very useful to someone else. Have three piles: sell, give away and dump.
- Review your regular payments. Do you have the right insurance cover in place (not just for your stuff, but for you as well)? Are you paying for things you don’t need like magazine subscriptions that you haven’t got round to cancelling? Are you on the right phone plan? Are there discounts available if you bundle services? Talk to your bank about interest rates on loans. Spending a little bit of time now to ask some questions can save you some money and time in the future
- Tidy up your money by setting routines in place to:
- Check your spending
- Make sure you are on track with your savings
- Talk to you partner about finances
Make an appointment with yourself once a month, once a quarter, or whatever time frame works for you and get into the habit of regular reviews.
If you want to tidy up your money and declutter your finances, but aren’t too sure where to start, then give us a call or drop us a line. We’re happy to help!