It’s that time of the year when everyone comes out of hibernation. While spring may make you want to head to the gym or start getting ready for your festive plans, it’s also the perfect time to spring clean your living space, take a fresh look at your financial situation, and get organised.
Wendy Naruses, Marketing and Communications Manager shares six ways to refresh your personal finances this spring:
1. Review your financial goals.
Start by reviewing the financial goals you have set for the year. These could include saving for a vacation, paying off debt, or building an emergency fund. “Use your spring cleaning as a launching point to set financial goals for the remainder of the year and break them down into manageable, measurable steps”, says Wendy. Having clear goals will help you to prioritise your financial activities.
2. Dust off your budget.
Dust off your budget or create one if you haven’t already. Track your income and expenses to see where your money is going. “If you don’t tell your money where to go, you will end up spending mindlessly, and not knowing what you spent your money on. “Look for areas where you can cut back or reallocate funds to help you meet your goals”, she says.
3. Check your financial statements.
Request your financial statements and understand your spending. It’s valid to review your financials on a regular basis for errors or inaccuracies, and should there be any, make sure to flag them as it will help you manage your finances from a holistic view point.
4. Organise your financial documents.
Gather and organise important financial documents such as bank statements, tax returns, investment statements, and insurance policies. Consider going paperless to reduce clutter and make document retrieval easier.
5. Get help.
If you’re unsure about certain financial decisions or need guidance, consider consulting with a financial adviser or planner. “An appropriately authorised financial coach will help you put together a holistic financial plan that takes into account your financial circumstances, needs, goals and investment objectives”, says Wendy.
6. Educate yourself.
Knowledge is power. Continue to educate yourself about personal finance. There is information available to help you along your journey to financial confidence, but be circumspect about the source of the information you encounter.
Remember to track your progress regularly and make a habit of reviewing your finances, at least once a year. Life happens, and if there is a change in yours, like the birth of your child, landing a new job or the death of your spouse, you will need to review your financial plan. This will help you to stay on track and make necessary adjustments as your circumstances change.
