When spring cleaning is mentioned, thoughts quickly go to overgrown lawns, greasy bathroom floors, disjointed wardrobes, dirty sofa and more. Have you thought about spring cleaning your finances though? Overgrown debt can be far more debilitating than overgrown lawns! Here are some tips to guide you.
Put your paperwork in order
Spend some time on gathering all your paperwork to see your exact financial situation. You can only work hard towards improving things when you are certain about your current financial position. Immediate paperwork that comes to mind include your travel insurance, telephone and mobile phone bills, bank statements, insurance policies and everything else in between. Work out how much every item in the paperwork is costing you monthly against your income. This is the foundation you need.
Tidy up your debt
Do you know exactly how much you owe? Are you certain that you aren’t paying exorbitant interest rates? Make a clear list of how much your owe starting from personal loans to credit card debt and going up to mortgages. When you have made an accurate list, arrange them in size and aim to wipe off the smallest ones. With the bigger ones like mortgage, consider talking to an advisor about remortgage for better rates, or using a mortgage calculator tool to see if you could be getting a better deal.
Ditch unproductive subscriptions
You know all the subscriptions that you never use? Now is a good time to shut them down. Think about online streaming services, gym memberships, website subscriptions that you no longer need and more.
Find your forgotten funds
There is decent chance that you have dormant bank accounts with funds you no longer remember. This is the time to find them and get your money back. My Lost Account will help you find your old bank accounts and get you reunited with your cash. Similarly, if you have switched utility providers across the main 6 providers in the UK, you might have some money dormant in your account. If you have made overpayments, you can get a refund.
Spice up your savings
When you have sorted your debts and bills and know how much “forgotten money” you are expecting from dormant accounts, the next step is to make sure that your savings are in tip top shape. If you are putting money in a savings account, watch out for changes to the rate after your first year. Don’t forget to shop around extensively for better rates especially around the start of every new tax year. Additionally, you can use a current account to save money as well. A good number of them can offer higher rates on your savings as well.Getting your finances in order is very important for anyone serious about financial freedom. Regular spring cleaning with the tips mentioned here will put you on your way.