There’s something deeply refreshing and invigorating about decluttering your home to welcome spring. It’s not something any of us look forward to, but somehow, once you’re elbows deep in dust, junk, and clutter, a new energy reserve kicks in. And when you stroll around your home after the spring cleaning is done, the sense of clean, fresh satisfaction is undeniable.
If this sounds appealing, you may be interested to know that you can get the same sense of deep satisfaction from refreshing your finances too. Whether you’re a student in London, a digital nomad in Thailand, or the best tax agent Sydney has to offer, there’s no question that your finances could do with some work. Whatever your level of financial literacy, a yearly spring-clean can help you identify areas for improvement, boost your savings, and reduce your financial stress.
If you’re up for the challenge, here are five key areas to focus on:
Review Your Spending Habits
Take a deep dive into your spending patterns over the past year. Analyze where your money goes and look for areas where you might be overspending. Consider using budgeting apps or spreadsheets to record all your income and expenses. Even if you just fill out a spreadsheet covering a few months, you’ll better grasp your spending habits. From here, you can make more informed decisions about where to cut back and where to allocate more funds.
Audit Your Subscriptions and Memberships
We’ve all signed up for a free trial that turned into a monthly charge we forgot about. Then, of course, there are the gym memberships we rarely use, the language learning app we’re definitely going to get our money’s worth out of next month, and the streaming services that keep offering deals whenever we try to cancel. It may only be a few dollars here and there, but these little costs can quickly add up into a shocking monthly spend.
With this in mind, it’s time to declutter your subscriptions! Review all your recurring payments, from streaming services to gym memberships. Be realistic, and cancel anything you no longer use. At the very least, look for more affordable alternatives. You’ll be surprised how much you can save by simply cutting back on unnecessary subscriptions.
Assess Your Insurance Coverage
Life changes, and so should your insurance policies. Review your home, auto, health, and life insurance policies to ensure they still meet your needs. Consider factors like changes in your living situation, the value of your belongings, and any major life events. You might find opportunities to adjust coverage or get yourself more competitive rates.
Evaluate Your Retirement Savings
Whether you have a self-managed super fund (SMSF) in Australia or a 401(k) in the US, regularly reviewing your retirement savings is crucial for achieving your long-term financial goals. Check the performance of your investment accounts, rebalance your portfolio if necessary, and increase contributions if possible. Take advantage of employer matches, and speak to a professional if you’re feeling lost. From SMSF accountants to non-profit financial planning services, there’s sure to be someone available to help you perfect your retirement plan.
Declutter Your Financial Documents
It’s a tedious job, but organizing your financial documents is a great way to clear clutter and create a sense of order and calm. Shred outdated statements, tax returns, and other sensitive information. Create a digital filing system for important documents, such as insurance policies, birth certificates, and wills. Consider using a secure cloud storage service to protect your files.
Start with these five areas and watch your finances bloom!
