Spring Cleaning Your Finances For Your Future

Most of us clean up our offices and our homes as a routine session, but we neglect tidying up an important element of our lives. When left unattended, the control over our own finances may slip out of our hands, leaving us with unchecked expenses or unexplained deficits (thanks to inflation).

Here are some ways to do a quick financial check-up, and make sure that your bank account is in good shape for the coming months!

1. Check Your Outstanding Debt

No matter what type of loan it is, these figures tend to accumulate with time (thanks to interest), and can easily result in unsolvable debt.

Start with a 'forest for the trees' perspective and understand exactly what your salary is financing each month. Find out how much you owe by looking at your bank statements (for automatic deductions) or by making a physical list of creditors you are currently tied to which may be easier to 'see'.

2. Set Up Automatic Payments

This is a great way to enforce financial responsibility in the short-term, by ensuring that you do not fall behind on your commitments.

Automatic deductions also remove the burden of having to keep track of several different due-dates for different organisations.

Compared to not taking on any loans at all, timely repayments to banks actually have a positive effect on your credit score. They slowly but surely contribute to building a higher rating, identifying you as a trustworthy loan recipient.

3. Reevaluate Your Insurance Needs

Once the immediate commitments have been sorted out, it is now time to look at your medium- to long-term commitments. Locate all of your insurance policies that you currently hold. Review your premiums, deductibles, and beneficiaries to ensure it all still meets your needs.

4. Rebalance Your Portfolio

It is advised to rebalance your investment portfolio during or after tax season every year. Your asset allocation may no longer be in a profitable balance. Realign it with your current goals, based on your current priorities and commitments.