When it comes to finances, it’s a good idea to regularly check your budget to see if you need to make any changes or adjustments. Even if you’ve determined your budget for the year, you may learn a new strategy or have a priority come up suddenly that causes you to shift your thinking.
Here are ways to take stock of your finances and ensure they’re still on track.
Review your budget quarterly
Now that we’re into the new financial year take the time to review and see whether you’ve kept your budget on track for the year. What has worked well this year, and what hasn’t? Are there any improvements you need to make? Are you spending more than intended? Have you had any unexpected expenses that require shifting your strategy?
Double-check your goals to see how they are progressing. Do you have as much money in your emergency savings as you want? Is enough money going towards your retirement as needed?
Identify and remove any unnecessary expenses
With so many options for subscription services, chances are you’re paying for things you no longer use. Look at your bank and credit card statements to identify regular charges for items that aren’t necessary. Maybe you signed up for a streaming service you never watch or a digital publication you don’t read.
Be honest with yourself about these subscriptions. If you’ve had a gym membership for years and only go once or twice a month, it probably isn’t worth a monthly fee. However, if you use it regularly, it might be more justifiable.
Keep only recurring expenses you actually use, no matter how little they cost. While individually, they may seem like small amounts, those regular expenses add up over time.
Set up a separate account for extra spending
If you have one account for both your regular expenses and your extra expenses, it can be easy to lose track of how much money is in that account. Keep separate accounts, one for your regular expenses and one for those that are discretionary.
If you like, you can have more bank accounts to further keep track of your expenses, but at the very least, have two separate accounts for your spending.
Use reminders to keep track of due dates
Technology has made it much easier to keep track of looming payment deadlines. Create a list of your bills and their due dates. Set up a way to keep track of and notify you of upcoming deadlines. This can be a calendar notification, smartphone app, agenda, or wall calendar. Look at the app every so often to see how your payments are scheduled out and determine if you need to shift any payment due dates.
Clean up your paperwork
Holding on to all your receipts for decades is unnecessary. Some you don’t even need to hold onto at all; those claimed on your taxes must be held onto for a certain time period. Once the period has passed, you can shred and dispose of them. Where possible, opt for online billing and receipts so you don’t have to deal with paper cluttering up your office.
Final thoughts
It’s a great idea to spring clean your finances to ensure you’re on track for your budget and aren’t unnecessarily spending money.
If you have any questions, feel free to Join the conversation…