Spring Clean your Finances
Monday, June 9, 2014
Most people think of their homes when they think of spring cleaning, but your finances can and should be spring cleaned too.
- Sort out your investments. Calculate whether you are holding onto losing investments for too long, or whether you are inclined to cash in so quickly on profitable investments that you benefit less than you should. Recalibrate your investment habits and evaluate your current investments accordingly.
- Spring clean your bank accounts. Keep only the necessary few dollars in accessible low interest accounts so that you do not lose the interest you can gain on it elsewhere. Alternatively, if you live on an overdraft with massive bank fees sell an investment and transfer that cash to a savings account. Cancel the direct debits you no longer use, since the fees on them are costly. Research whether you have the most beneficial credit card, and calculate how to pay it off in full as often as possible. Compare your bank's accounts and fees with those of other banks to ensure that your loyalty does not cost you too much. Investigate whether it will be advantageous to re-negotiate your mortgage loan.
- If you do not have one, create a file to record all loan payments in case of a disagreement with a credit agency.
- Revisit all your subscription services to calculate whether they still give you good value for your money. Include insurance, television, phone, internet and so forth. If you think they no longer provide you with the benefits for which you purchased them, start negotiating with the providers for better deals and also approach the competitors.
- Throw away the last year's utility bills, pay cheque stubs and bank statements to make room for this year's documents.
- Trash expired product warranties and organise the ones that are still valid.
- Consolidate your numerous sticky notes and reminders into one to-do list and calendar. Smart phone applications can be very handy here.
It’s always advantageous to look and make sure your finances are working with you, not against you.