How To Spring Clean Your Finances

I’ve seen the words spring clean all over social media over the past month. But it’s not just your home and cupboards that deserve a clean, your finances do too. Good management is all about keeping on top of things, and if you spring clean your finances you’re doing just that.

There are certain tasks you should do every month, others once a quarter, and some annually. Set yourself reminders to do these tasks so they become part of your everyday admin. This means they won’t creep up on you, and you won’t miss out on any potential savings.

I spend a bit of time most weeks on financial tasks as I’d rather spend 10/ 15 minutes every week than have it build up.

Monthly ways to spring clean your finances

Update and review your budget

A budget is essential to keep track of spending and make sure your money is being used in the best way. But every month won’t be the same, some months your income may differ if you’ve done overtime or had a pay rise. And your spending won’t always be the same as your plans and expenses may change.

I give myself weekly spending money and each month I will review what I have coming up over the next month so I can work out a budget. This includes putting money aside for fixed expenses, meals out and any shopping I may want to do.

Make sure you have the correct sinking funds set up so you can save for events or larger costs across a longer period.

Review your credit score

Your credit score is really important to show lenders your money habits. It can impact the interest rates you get on your credit, and it could be the deciding factor of approval. So it’s important to keep on top of your credit score to identify any improvements you can make.

If there’s a genuine mistake on your credit score such as a missed payment that wasn’t missed the earlier you flag it the more chance you have of it being reversed.

Quarterly checks

Review your household expenses

It seems like all bills are going up from insurance policies to home broadband and TV services. Every quarter it’s worth reviewing what you spend to see if you could be paying less, or whether you can get rid of something.

Most of us have at least one subscription including TV, music and entertainment. As a household, we currently have Disney+, Prime, Audible, YouTube Premium and Spotify. Each quarter I review what we have to make sure it’s worth the money/ we’re getting use from it.

Spring clean your finances by identifying bad spending habits

Overspending can happen, and the quicker you pick up on it the better. While you should be reviewing your spending each month alongside your budget it can take a bit longer for patterns to emerge.

Bad spending habits can quickly spiral out of control, especially if you’re relying on overdrafts or credit cards.

While you’re looking at spending habits review things like your household grocery bills to make sure you’re sticking to your budget. You may find that you need to adjust your budget if you’re constantly spending too much. Or you may want to try budget versions of some products you buy.

Review savings rates

Interest rates aren’t the best at the moment so it’s even more important to make sure your savings accounts are offering the best rates. You may even have some you opened and haven’t touched in years.

Check and compare savings accounts and other financial products like ISAs by using comparison sites such as GoCompare.

Spring clean your finances by reviewing debts

As long as you have a budgeted debt plan then this can continue to tick along, but every few months it’s worth taking a stock check on them.

List out the debts you have including their balances, due dates and interest rates for each. Each time you do this you should see the balance go down. As you’re reviewing your budget every month you may find some months you can allocate a little more to paying back debt.

Yearly ways to spring clean your finances

Review insurance policies

Never just accept a renewal on your car insurance, home insurance etc. Always make sure you shop around to see if there’s a better deal out there, and chances are there will be.

Make a recurring reminder in your calendar to review policies around a month before they renew. I’ve saved thousands over the years moving car and home insurance providers. I also do the same checks for Luke’s business and life insurance policies.

Most companies won’t offer you anything for loyalty so jump ship if you need to for a better deal.

Other things to review annually

• At the end of the tax year review your National Insurance contributions to ensure you’ll get a full state pension when the time comes.
• Review your workplace or private pensions, and ask yourself if you can afford to up your pension contributions.
• If you own your home, review your mortgage statement. If you’re coming to near the end of your fixed period see if you could save money by remortgaging.
• Claim your tax-free childcare vouchers if you have kids and require childcare. You’ll need to create an account on the government’s website and apply for the scheme.
• Before the end of the tax year see if you can boost ISA savings to make the most of your allowance.
• Go through your paperwork and shred anything you no longer need.

How are you going to spring clean your finances?

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