PRACTICAL WAYS TO SPRING CLEAN YOUR FINANCES

Spring is a time of renewal and refreshment. Breathe some new life into struggling finances with solid ideas the experts agree on.

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Deep cleaning your finances this spring will make you feel on top of things while also saving you money and preventing nasty surprises up ahead. That's well worth the effort. And with the big spend of the holidays just a few months away, it will be good to know exactly what you have and what you can afford. It might even spare you the usual money headaches in January.

Get started
The deep clean of your finances can start with your actual home. Go through your rooms one by one and sell, trade, or donate anything that’s just clutter. This might seem like an odd way to start but it will get you in the right frame of mind to tackle that pile of faded receipts and bank statements.

Clean up paperwork
Going digital will help you get organised. Borrow a scanner if you don’t have one or download a scanning app on your phone to make digital copies of all documents that should be kept. Put them in one place, in clearly named folders.

There’s no such thing as being paranoid when it comes to guarding against identity theft, so shred all the paper when you’re done. Tearing or cutting them in small pieces will do as well.

The final step is to ask everyone who sends you paper docs to use an e-mail or SMS instead. You can usually change your preference on their website.

Related article: Stretch your salary

Sort out accounts
If you have different accounts for credit, saving and shopping, see if you can merge them into one. The less statements you have to compare, the easier it will be to feel in charge of your affairs.

Maximise card rewards
Most bank cards have a rewards system. Make the most of this by using the card that will earn you the most rewards for specific purchases, such as groceries, petrol and/or travel.

Budget for one-off events
You’ll remember to buy electricity or pay school fees but you might forget about baby showers, weddings and big birthdays. Put the dates in your phone calendar and work out how much you might need for travel and presents so you can set aside money for that.

Related article: How to manage your money when you have family to support

Automate savings
Keep your good saving habit going with a direct deposit that goes into your savings or investment account. That way you won’t be tempted to skip a month.



Update details
Check every bank or company you do regular business with to make sure they have your latest phone number and e-mail address so you don’t miss important announcements or special offers.

Drop old habits
Spring is a good time to change habits that don’t do your health or your bank balance any favours. Pack snacks and a flask of coffee for work. Vending machines and takeaway drinks can make a big dent in your pocket.

Just don’t try to cut the habit in one go. Consider gradually reducing the habit.

Shop around and wait
Compare prices for items online before you buy and resist impulse buys. Try waiting a day before hitting the buy button or spending big in a shop. This cooling down period will help you to think more clearly about the decision.

Related article: How to successfully manage money as a couple