Spring clean your finances!

As the warmth of the spring sunshine encourages us to throw open our windows and have a bit of a spring clean, it’s also a great time to spring clean your finances. 

In this blog, I’ll share 10 ways to spring clean your finances and set yourself some achievable money goals for the weeks and months ahead.

Spring Clean Your Finances Step 1. Assess Your Financial Health

Before diving into the nitty-gritty of spring cleaning your finances, take a moment to assess your current financial situation. 

Gather all your financial documents, including bank statements, credit card bills, and investment statements and let’s get ready to spring clean your finances!

Work out how much you own, eg house, car, savings and investments. 

Then work out how much you owe: loans, credit card debt, school loans, medical bills, and so forth. 

Calculate your net worth by subtracting your liabilities (debts) from your assets (savings, investments, property). Understanding where you stand financially is the crucial first step toward building a solid financial foundation.

I always find this process of spring cleaning your finances enjoyable. I try to make time at least twice a year and I love seeing the progress that we have made. 

I know that it’s not a five minute job, but it’s time well spent as you really get to see the bigger picture. It’s from there you can set yourself some long term SMART money goals. 

Read my blog on Setting Financial Goals for more information.

2 . Review Your Credit Score and Report

Your credit score plays a pivotal role in spring cleaning your finances. It determines your eligibility for loans, credit cards, and even rental agreements. 

Request a copy of your credit report for free, from major credit bureaus (Equifax, Experian and others are available)  and take a close look and check it for any errors or discrepancies. Check your credit score and identify areas for improvement. Paying bills on time, reducing credit card balances, and disputing inaccuracies can all help boost your score.

For me, making annual credit checks part of your spring cleaning your finances, is important because it can help you see where you currently stand with your credit,  see problems that could suggest identity theft or fraud and take measures to improve your credit score.
I can highly recommend Martin Lewis’ Credit Club as you get emails when your credit score has changed! It’s free too!

3. Evaluate Your Insurance Coverage

I believe that insurance provides a safety net against life’s uncertainties. I know it sounds morbid but I do encourage everyone to get insurance coverage. 

Sadly, my mother in law died when she was young and it highlighted the simple fact that she needed life insurance. Due to the fact that she didn’t have any, my father in law had to work long hours to provide for his two young children. At a time when they needed him most, he had to work. 

That’s why I am passionate about life insurance! 

So, make time to review your existing insurance policies, including life insurance, health insurance, home insurance, and auto insurance. Ensure your coverage is adequate to protect you and your loved ones in the event of unforeseen circumstances. Consider factors such as coverage limits, deductibles, and premiums, and make adjustments as necessary.

I can highly recommend Kathryn Knowles at Cura. She is an award winning insurance advisor. I am not earning any commission by recommending her, I just know that she sorted insurance for my husband and I and I genuinely recommend her! 

While we’re talking about insurances, I’d also encourage you to check that your Wills are all up to date.

I reviewed our Wills for the first time in the longest time recently, and discovered that the solicitors had moved and changed their phone number too! So in the process of ensuring our Wills were up to date and the contact number and so forth were correct, I also updated our ‘When We Die File’. I know it sounds morbid, but I want to ensure that when we die (because that’s 100% certain!) the process of Wills and life insurance isn’t a burden to those that we leave behind.

4. Refresh Your Budgeting Strategy

In every book that I have ever read on personal finance, they all start by saying one thing: budget.

Now I appreciate that the word budget has negative connotations and you believe that budgeting means restrictive (as I did 20 years ago). I promise you that budgeting is empowering! 

I have come to learn that budgeting is the foundation of financial stability. 

Take a close look at your income and expenses to create or update your budget for the upcoming months. Start by listing all sources of income, including salaries, bonuses, and investment returns. 

This may also be a good time to review your large annual expenditures and start creating sinking funds for them. We started this a few years ago and the positive impact that it’s had on our finances has been a complete game changer! 

Then, track your expenses across various categories, such as housing, transportation, groceries, and entertainment. Identify areas where you can cut back or reallocate funds to align with your financial goals.

Be sure to read my blog for more information on how you can create a budget in 6 easy steps.

5. Optimise Your Spending

Once you’ve established a budget, it’s time to scrutinise your spending habits. Look for opportunities to reduce discretionary expenses without sacrificing your quality of life. 

Consider negotiating bills, canceling unused subscriptions, or switching to more cost-effective alternatives. Small changes in your spending habits can lead to significant savings over time, freeing up funds for savings or debt repayment.

Many of my clients have saved between £75 – £100 a month on cancelling subscriptions that they thought they had cancelled or completely forgotten about. 

I have also encouraged my family to cancel several streaming services, and we have saved ourselves in the region of £50 a month. What’s not to like! 

6. Maximise Your Savings and Investments

Saving and investing are essential components of wealth-building. Review your savings goals and determine if you’re on track to meet them. 

Consider opening or contributing to tax-advantaged accounts such as Individual Savings Accounts (ISAs) or workplace retirement plans. 

Evaluate your investment portfolio to ensure it aligns with your risk tolerance and long-term objectives. Diversification and periodic rebalancing can help optimise your investment returns while managing risk.

7. Set Financial Goals

When you take a close look at your budget, you can clearly see where the holes are – where there are leaks in the ship if you would like. 

Take this opportunity to create some short term money goals. 

Are you spending more than you earn?

How much debt are you in? Could you work to reduce that or work hard to be completely debt free? 

Whether you’re saving for a down payment on a home, planning for retirement, or building an emergency fund, clearly defined goals provide direction and motivation. 

Break down large goals into smaller, actionable steps, and track your progress regularly. 

Celebrate milestones along the way to stay motivated and focused on achieving your objectives.

For more information on how you can congratulate yourself on achieving your short term money goals, be sure to read my blog on Celebrate The Small Wins!

8. Adopt a Positive Money Mindset

Your mindset plays a significant role in shaping your financial habits and behaviours. 

Cultivate a positive relationship with money by reframing your thoughts and beliefs about wealth and abundance. 

Focus on gratitude for what you have and adopt an abundance mindset that embraces opportunities for growth and prosperity. 

Practise mindfulness and intentionality in your financial decisions, aligning your actions with your values and goals.

I appreciate that this can be hard to start with, but believe me when I say that focusing on the things you do have, really does change your mindset.

If you’d like to focus on the positive things in your life, then take a look at my Gratitude Journal. Make it part of your daily routine for the next 30 days. Be sure to reach out to me on my socials and let me know how you get on? 

9. Embrace Financial Education

Did you know that April is Financial Literacy Month?

Financial literacy is the key to making informed financial decisions and building wealth. 

Take advantage of the many educational resources, such as books, podcasts, and online courses, to expand your knowledge of personal finance. 

Some of my favourite podcasts include The Meaningful Money Podcast and This Is Money.

Seek advice from trusted financial professionals, such as certified financial planners or investment advisors, to address specific questions or concerns. Investing in your financial education pays dividends in the form of increased confidence and competence in managing your money effectively.

Spring Clean Your Finances Step 10. Conduct Regular Financial Checkups

As you are well aware, financial planning is not a one-time event but an ongoing process. Schedule regular checkups to review your progress, adjust your strategies as needed, and stay on course toward your goals. 

Use milestones such as birthdays, anniversaries, or the start of a new year to revisit your financial plan and make any necessary revisions. By staying proactive and engaged in managing your finances, you’ll be better equipped to navigate life’s financial challenges and capitalise on opportunities for growth and prosperity.

In conclusion, spring is the perfect time to refresh and revitalise your financial strategy. By following these ten steps, you can declutter your finances, set meaningful goals, and chart a course toward financial success. 

Remember, time taken today can lead to significant financial gains tomorrow. So, roll up your sleeves, embrace the spirit of renewal, and embark on your journey to financial empowerment this spring.

I hope that you’ve found this blog helpful. I know that these 10 tips for spring cleaning your finances will take time, but I hope that  you will appreciate that it will be a great job done!

Be sure to reach out to me via my socials or leave a comment below to let me know how you get on!