Spring clean your finances – 5 simple tips
Spring clean your finances by watching the video below. It is surprising just how simple it is. There is some more information below that will give you some tips about managing and saving money, by blowing the cobwebs off your cash!
The first step in saving money is to get into that pile of paperwork and get it sorted out. I like to have a tidy out every so often and find it is much less painful if I sit by the stove with a glass of wine and piles of paper!
Get a filing system sorted out – buy some pretty storage if it helps to make the process less painful – and then start sorting the paperwork to go in it.
Make 3 piles – one of things you need to keep, one of things you MIGHT need, and one of the rubbish! As soon as you can, get the “keep” pile filed away – it looks neater and makes you feel as if you are actually getting somewhere.
In the “maybe” pile you should keep things like old credit card or bank statements and old loan or mortgage agreements, just in case you need them later. You might want to take photos of them and then store them on the PC and put the paper copies into the chuck pile – whatever feels right to you. If not, then bung them in the loft or somewhere out the way of your everyday filing system.
I love then chucking anything that is rubbish in the stove and watching it burn – very therapeutic! If you are not burning your rubbish pile, then be very careful with it – you should really shred it or make sure that any of your details are not able to be read. Take a minute to read this useful information on identity fraud.
Income and expenditure
Once you have sorted the paperwork it is time to get started on the figures, to really help with your quest of saving money.
- Make a note of all your income, including child benefit, penisons, CSA etc
- Add up all your direct debits and standing orders
- Add up your everyday expenses, such as food, clothes and nights out
- Think about your annual expenses – Christmas, birthdays, holidays etc and divide that figure by 12 and add that into your calculations
- Add up all your expenditure
- Subtract your expenditure from your income
- Look at the figure you have left – is it a plus or a minus?
- If it is a minus, then you seriously need to rectify this as you are spending more than you earn and could easily end up in a scary spiral of debt, if you are not already. Taking the time to look at all your outgoings carefully is a great place to start – can you reduce them? Can you increase your income? Don’t despair – nothing is impossible – take action!
- Even if you have money left over at the end of the month, you would benefit from taking the time to look through your expenses and see if you can get a better deal on any of them.
I hope that you have enjoyed my tips on how to give your finances a wee spring clean and hope that you have started saving money.
If you would like some help with sorting your finances, why not get in touch with me to see how I could help you to improve your situation. I would really love to be able to help you.
I am Eileen Adamson, a Your Money, Sorted coach, working online with UK based women, helping them to develop a better relationship with money. By gaining an understanding of how their personality affects the decisions they make, I can help them to implement changes which will allow them to feel calm, positive and confident that they are in control and making good financial decisions. I can then support them to put into place simple strategies that will allow them to manage their finances effectively on a daily basis and create a stable, secure and exciting future for themselves.