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It’s that time of year when Spring has sprung, the sun is shining, the colder days are warming, and evenings are getting lighter.   Now is the time we open up our cleaning cupboards ready for that fresh home Spring clean, but have you also considered the Spring clean of your finances?

A clean up of your finances could help you prepare for the financial year ahead.  Here a couple of ideas…

Budget

Make a note of your income and expenditure to make sure you have planned your cashflow well.  We know it sounds ludicrously simple, but the key to budgeting really is as basic as not spending more than you earn.  Get into the routine of looking at what you’re spending in comparison to what you have coming in, make it a part of your routine.  If required, where can you reduce your spending? Maintaining this habit for a couple of months really helps to identify areas which you could cut back or improve on.

Review your direct debits and standing orders

This is an opportunity to ensure any direct debits, regular payments and standing orders are for items or services that you are using.  Have you got a gym membership that you aren’t making use of? Do you have a television subscription that you could cut back on? There may be payments you have neglected to cancel.

Another thing to consider is taking a look at your overdraft.  Are you paying over and above what you actually need, what is your overdraft rate?  Could your account be moved to something more favourable?

Old Accounts

Have you got any dormant accounts with money sat in them, could this be placed somewhere with better rates, and would it be better to have your money in one place to save time on administration? Perhaps you have yet to use your ISA allowance for the tax year, or you are ready to begin paying into a new one, could your surplus funds from those accounts be transferred into an account that will provide you a better return?

Clear away your debts

Now may be the ideal time to get rid of any debt, depending on your personal circumstances there may be help and advice you can get.   Could you increase your income to help pay the debt, with extra hours at work or a part time job? Or do you have surplus funds that could be used to pay off that credit card you have been meaning to pay for a while?

Expensive Bills

We’re all feeling the increased costs of household utilities and fuel, can you take some time to research providers and look to find better deals elsewhere? Reviewing your current providers and switching could leave you with some extra cash in your account.  Always make sure you do your research before switching.

Increase your savings

Hopefully with budgeting well under way, your savings might get the right attention, if you’ve received a pay increase, have you increased your savings to reflect this.   Is your money getting the most competitive interest rate? Take some time to shop around to get the best returns for your investments.

Like always, we are here to help.   If you have any questions related to this article, please do not hesitate to give us a call.

_{David Allen Financial Services (Dalston) Ltd (Registered in England & Wales, Company Number 06966976) has its registered office at Dalmar House, Barras Lane, Dalston, Carlisle CA5 7NY. The company is authorised and regulated by the Financial Conduct Authority. Firm Reference 506138.}