Get Financially Fit
Spring clean your finances
Mar 08, 2021
Spring is a hopeful and happy season. And we’re almost there! Renewed energy is pushing us to have a big tidy up of our lives. As the mornings get brighter, we welcome this because getting our stuff together really helps us to focus on achieving our big goals. Money plays a key role in this. Because most of the big goals in life take cash to be achieved. So as we declutter, it’s important to spend time organising our finances too. Here’s how to spring clean your finances so you can feel good about money and achieve your one big goal.
6 things to do when spring cleaning your finances
Spring cleaning our finances generally involves the creation and/or practice of better money habits. And these habits can help you to build long term financial health.
1. Check your accounts
A great place to start when spring cleaning your finances, is by checking all of your open accounts. Look through your recent statements to check everything is as it should be. And to get an overview on how you’re spending your money each month. Are you living within your means? Are you spending more on shopping than you want to be? Open banking apps like Yolt make it easy to look at all of your accounts in one place. Check out their app here.
2. Update your budget
Putting together a budget is not a one time thing. It needs to be updated regularly to reflect any changes in your income, expenses and goals. So dust off your old budget, or create a new one if budgeting is new to you. And make sure it still works for you. Tweak it if not. Remember, this is a tool to help you get what you want. It’s not about limitations, quite the opposite. So embrace it.
3. Make a plan to clear debt
When it comes to making financial plans, clearing debt should be a top priority. Now you know how much debt you have outstanding (after reviewing your accounts), and you’ve updated your budget – you’re in a good place to make a plan to pay off your debts. But remember to take it a step at a time and go easy on yourself. Your plan needs to be achievable, and as long as it is, you’ll get there. And when you do, it’ll feel amazing. For free advice on getting out of debt, and staying out of debt, check out StepChange.
4. Track your savings
It’s really important to have an emergency fund available to you should the unexpected happen. A good rule of thumb is to have at least enough to cover three month’s worth of bills. Then, if you’re working on a big goal like buying a house or a car, or getting married, you’ll likely also have a savings goal in mind to make that dream come true. As part of your spring clean, get up to speed with your savings. How much do you have tucked away, and are you on track? If not, are there any changes you can make to your budget to be able to put money aside more aggressively each month?
5. Shop around for better deals
Unfortunately loyalty does not always pay. You can save a small fortune by shopping around for a new car or home insurance provider when your policies come up for renewal. Even if you stay with your current provider, you can phone them up and ask them to price match any cheaper deal you may have found before you renew for another year. You may also be able to switch energy providers to get a cheaper deal. Make shopping round for better deals something that you do at least once a year, and you’ll save a bucket of money.
6. Build your credit score
Having a good credit score is an important part of being financially fit. A good credit score helps you to get approved for things like loans, credit cards and mortgages — and save £1000s as you’ll be able to access better deals. (Here’s more on why your credit score matters.) Do you know what your credit score is at the moment? If not, it’s free to check your credit reports online. Try it now using the following services:
From there you can create a plan to start building it. LOQBOX is the easy and free way to build your credit score. Find out more here.
* Just to be super transparent if you sign up and follow this link although it's free for you, LOQBOX may get a small referral fee from ClearScore. This helps us to continue to improve our service for our customers and keep LOQBOX free.
Spring cleaning your finances may feel daunting at first, but it’s worth doing. Take it a step at a time and you’ll be on top of it and feeling good about your money before you know it! When you have your money mastered, it’s a lot easier to crack on with achieving your big goals.
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