As the warmer months gradually approach and trees blossom, I am excited to shed off some layers of the heavy clothing and embrace the new season. Spring is the season to declutter and make room for new life and opportunities. In a similar fashion, I encourage you to make time, declutter your finances and take control. As Marie Kondo, a Japanese organising consultant puts it ‘tidying is the act of confronting yourself’.
This week’s article shares practical tips which I provide below, to help us tidy up and take control of our finances.
Review bank statements
Let’s start by downloading three-to-six-months bank statements and then conduct a comprehensive audit.
Are there spending habits that you need to change?
Are there expenses that you are incurring that need to change?
Are there potential cases of fraudulent transactions on your account?
What is your expense-to-income ratio?
Cancel subscriptions.
The second step is to identify and review what services you are subscribed to that have not been used in the last twelve months.
Which subscriptions are you paying for including publications, entertainment, and games, then cancel those that are not relevant.
When last did you login and use the subscription service?
How much are you paying per month?
Review debit orders
Like the bullet point above, it is important to review your existing debit orders.
Which debit orders have you authorised to go through your account?
Are there debit orders that you do not recognise?
Are they any suspicious debit orders?
Close inactive accounts.
The fourth tip is to close inactive bank or investment accounts and policies. Take time this month to review all your accounts.
Do you have accounts with positive or negative balances that you have not used in the last twelve months?
Do you have existing insurance policies? When last did you review them? Are you adequately covered?
Do you have investment accounts? Have you checked performance in the last twelve months?
Review financial goals.
With less than five months left of 2023, take time to also review your financial goals.
How are you tracking against the goals you set in January 2023?
Are there adjustments that you need to make?
If you are behind, what is the plan to close the gap?
I encourage you to spend time working and reviewing your current financial position. If you do not like the picture that you see, seek professional help and act. For personal finance tips, follow Leruo available on print, radio and digital platforms. Visit www.alliance.co.ls for more information. Likhomo!
