Spring has officially sprung, and it’s that time of year when we all start thinking about fresh starts, clearing out the clutter, and making our homes feel a little lighter. But have you thought about giving your finances a spring clean?
Just like you take the time to tidy up your living space, it’s worth taking a step back to check if your financial situation is in the best shape it can be. After all, life moves quickly. It’s easy for things like direct debits, old insurance policies, or credit card payments to quietly build up without us realising it. You might have a mortgage deal that’s no longer serving you, or protection policies that aren’t the right fit anymore.
But don’t worry — a financial spring clean doesn’t need to be daunting or complicated. It’s all about checking in on the key areas that can make a big difference to your financial wellbeing.
Ready to Get You Spring Clean Started?
By going through this checklist, you’ll be well on your way to spring cleaning your finances and putting yourself in a stronger position for the months ahead.
1. Review Your Mortgage.
- 📋 Check your current mortgage rate: Is it still the best deal for you, or could you save by switching to a new provider or deal?
- 📅 Are you due to remortgage soon? If your fixed rate is ending, it’s time to start looking at your options. Starting this around four months prior to your expiry date is best practice.
- 💡 Consider your long-term goals: Is your mortgage still aligned with your future plans, such as moving, remortgaging, or paying it off sooner?
2. Protection: Are You Covered?
- 🛡️ Review your life insurance: Is your policy still adequate for your current needs? Do you have enough cover for your mortgage, dependents, and other financial responsibilities?
- 🚑 Check your critical illness and income protection policies: Are they up-to-date and covering you for everything they should?
- 🏠 Consider updating your home and contents insurance: Are your possessions and home value properly covered? Have you got the most competitive premium?
3. Tidy Up Subscriptions & Monthly Outgoings.
- 📅 Go through your bank statements: Cancel unused subscriptions (streaming services, gym memberships, magazines, etc.)
- 💳 Review your monthly bills: Are there any services you’re paying for but no longer use?
- 🔄 Look for better deals: Could you switch energy providers, mobile plans, or broadband to save money?
4. Credit Cards and Loans.
- 💳 Review your credit card balances: Are you paying off high-interest cards? Could you switch to a 0% balance transfer deal to save on interest?
- 💰 Consider consolidating debt: If you have multiple credit cards or loans, look into consolidating them for a more manageable payment plan.
- 🏦 Pay off any outstanding high-interest debts: Reducing high-interest debt will free up more money for savings or other priorities.
5. General Financial Health Check.
- 🏦 Revisit your budget: Does your current budget still align with your goals and priorities?
- 💰 Track your spending: Are there areas where you can cut back or make adjustments?
- 🔒 Review your savings plan: Are you on track with your savings goals? Consider setting up automatic transfers to savings accounts or investment funds. Many banks now offer a ‘Save the Pennies’ option, so it’s super easy to squirrel away some extra pennies without an extra thought.
6. Consider Future Goals.
- 🔮 Plan for your future: Do you have a solid retirement plan in place? Are you contributing enough to your pension or investment accounts?
- 📈 Check your credit score: Stay on top of your credit health, as a good score can help with future financial decisions (mortgages, loans, etc.). Check My File is a good website to do this as they generate a report on three different agencies rather than just one.
Next Steps?
If you’re unsure where to start or need expert advice on any of these steps for a spring clean on your finances, I’m here to guide you. Whether it’s reviewing your mortgage, updating your protection, or just getting your budget in shape, don’t hesitate to reach out. Let’s work together to get your finances looking their best!