Spring Clean Your Finances /
Finance
Spring clean
A
nyone who has read Marie Kondo’s best-selling book, The Life-Changing Magic of Tidying Up, will know her approach to decluttering is to focus on surrounding yourself with things that “spark joy.” There’s no reason why you can’t take the same approach to a spring clean of your finances. If your finances are causing you grief or concern, it might be time to run a joyo-meter over them.
your finances
It’s not just time to clear out the physical clutter in your home. Why not take a look at your finances to see if there’s anything you can throw out or tidy up?
Start By Committing To Clean Up Your Finances
Sometimes the negative feelings about our spending come from the sneaking suspicion that we’re spending more than we should. It feels better to get clear on where our money is going and then commit to take positive action to change things.
What Brings You Joy In Life?
Want to reduce that “eek!” reaction when you check your bank balance? Start by thinking about what brings you most joy in life. How do you actually want to spend your money? Are travel experiences important to you? Or do you love a good restaurant meal or participating in certain hobbies? Do you consider socialising with friends money well-spent or do you like to be able to be generous with your family?
Trim Back What Doesn’t Bring You Joy
Implement A System
Now that you’re clear about what you value spending money on, it’ll be easier to see where your bank balance is being drained by things you don’t consider important. Perhaps you like to have a mobile phone but getting the latest iPhone wasn’t really a priority. Maybe you thought that a magazine subscription or club membership would be something you’d enjoy but they’ve both been neglected. Are all your direct debits still bringing you joy? Amanda Cassar, financial adviser, Wealth Planning Partners, says: “It’s easy to sign up for things and forget that the monthly debits still come out, whether we’re using the service or not. The little bits all add up.”
Restoring order to our finances can help us feel happier about our money. If you always have a scramble at tax time to get together your paperwork, get into the habit of photographing or scanning any receipts that may be a tax deduction. Using a spreadsheet, app, or filing system can help bring more harmony into the management of your finances.
AUGUST - SEPTEMBER 2021 ACTIVE RETIREES |
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