5 Ways to Spring Clean Your Finances

There is never a bad time to dedicate a few hours to spring clean your finances. Arguably you should be doing these things multiple times each year. But if you don’t have the time then at least do these once a year. So if you are reading the list and thinking “I’ve never done that!”, this is your call to action!!

Here are five ways to spring clean your finances.

#1 Review your system

Does your current system work for you? No? Why not change it and try a new system. Are you currently using pen and paper but loose it often? Maybe a spreadsheet would work better for you. Or maybe it’s the other way round and you’re currently using a spreadsheet but hate it!! It might be time to switch it up and try a new method.

The same goes for your budgeting method. Budgeting is very much trial and error. Try all the methods until you find the one that works perfectly for you. What works for one person will not work for you, simply because your numbers, goals and situation is different. So don’t give up if the first one fails you.

#2 Update your numbers

Take an hour to go through all of your accounts and update your numbers. By numbers I mean account balances, transaction amounts, asset values, debt balances etc. Once these have all been updated you can then work out your updated net worth – reflect on this number. Is it higher or lower than you think it is? Why?

You can also use your updated numbers to see your spending trends. Are you haemorrhaging money and have no idea why? This is the perfect time to see exactly where every penny is going and change your habits going forward.

#3 Realign your goals

This is your sign to check-in with your goals. Make sure they are still relevant to your life and situation. Measure your progress – are you where you think you are? You may find you are behind and need to adapt the goals so they are more realistic. Or alternatively you may be more ahead than you think. In this case, why don’t you increase the goal? Or set a new one.

#4 Double-check your expenses

When was the last time you attempted to renegotiated your bills? Do you know when your contracts are running out? This is especially important right now as the cost of living is continuing to rise. Take an afternoon to go through all of your expenses and just see if there is anything you can cut out or reduce. Also check the end dates of your contracts – if they are coming up soon spend a little bit of time trying to find a better deal.

#5 Check for fraud

Please please please if you only take one tip away from this blog post make it this one! Financial fraud is as rife as ever but you can protect yourself by noticing it early. Make sure you are regularly checking your accounts for any transactions you don’t recognise. Report anything out of the ordinary immediately.

So that’s it – 5 ways to spring clean your finances today!

Do you regularly spring clean your finances? If so, what is your routine? I’d love to hear all about it in the comments!