SPRING CLEAN YOUR FINANCES!

Spring is a great time to clean out the cobwebs in your financial affairs. An annual financial spring clean will help you stay on track with your financial goals and give you the peace of mind of knowing your finances are in good order.

Don’t be a pack rat. We all tend to hold onto credit card statements and expired warranties for years! Give the heave-ho to the financial records you no longer need and file away the ones you need to keep, bearing in mind that all tax-related documentation should be kept for five years.

A budget is your best tool for controlling your money. Remember, it’s not about how much you earn, but what you do with what you earn. Create expense categories that reflect where your money is going. Then determine where you can spend less per category, so that you can put that money into savings or investments.

We all know it’s not easy to change habits, especially ones that provide instant gratification, like those daily cappuccinos. But by eliminating just one, you can save a substantial amount of money.

Have you married in the past year? Had kids? Come into money? These are all reasons for talking to an expert about tweaking the terms of your will. If you don’t have a will, consider having one drawn up.

Once again, lifestyle changes over the past year can mean your insurance needs have changed too. Make sure you have enough and the right kind of insurance.

Debt can create a dreary financial picture. Reducing your debt allows you the freedom to make smart future financial choices. Focus on your debt with the highest interest rate, not forgetting to make required payments to all debt. Once that account is paid off, roll that amount over to the debt with the next highest interest rate. If seeing quick progress is a good motivator for you, consider paying off your smallest balance first.

Many of us are woefully behind on our retirement savings, so examine your retirement planning carefully. Are your retirement savings suited to your needs? Are you saving and investing enough? Do you have independent retirement solutions as well as your company related pension fund to make up for any possible retirement funding gap?

Stash away money every month to ensure that you are financially prepared in the event of any unexpected financial crisis. Even a small amount each month can add up to a lot over time.

Do you have a healthy attitude towards money and financial goals? Are you willing to sacrifice in the short term to have what you want in the long run? Do you spend for the right reasons, or do you use shopping as an instant gratification provider? These questions are valuable and will give you direction with regard to your financial planning.