Good habits make it easier to be good with your finances.
What is “financial housekeeping”? Well, it’s essentially the process of keeping your finances in good order through regular attention and maintenance. A quick dusting down of your budget each week or shining up your savings with better planning and research can make all the difference to overall financial health.
Keeping your finances in good shape means you won’t have to rely on expensive doorstep cash loans or personal loans in an emergency – like your heating breaking down in the middle of winter. If you’d like to be better at financial housekeeping then here are some useful tips.
Make your finances a regular priority
Just like regular housekeeping, the financial version needs to be regularly done if you want your finances to be orderly and sparkling. Schedule in some time once a week to look over budgets and review your goals to see where you are with what you have in the bank – and what you’re trying to achieve.
Carry out a financial spring clean often
Overspending and financial waste can be curbed with a regular review and clear out of your finances. Are you paying for apps or services that you just don’t use anymore (e.g. online streaming or gaming apps)? Do you know how much you spend on coffee every week and are you eating the food that you buy or does it just end up in the bin? Go through every aspect of your financial life and assess whether it’s working and if improvements could be made.
Hesitation isn’t always helpful in life in general – except when it comes to your finances. If you’re trying to improve the way that you manage your money then a little hesitation is sometimes no bad thing. Feeling like you want to spontaneously purchase a whole new outfit or TV? Just give yourself a day or so to think about it. Looking at exotic holidays online and wondering if you could just skip a few car repayments to take advantage of a discount? Just wait 24-48 hours and then think it over again.
Regularly reassess your options
Interest rates change on a regular basis so it makes sense to review where these touch your financial life as part of routine financial housekeeping. Could you pay less for money that you’re borrowing, for example? Or is there a better product for your savings that would help you to generate more income from what you put aside?
Think about the future
When you’re committing to financial housekeeping always keep your eye on the horizon. Living in old age is becoming increasingly expensive and poverty is a very real threat for many who reach pensionable age. Do your current financial arrangements include a provision for covering the costs of living when you’re in your golden years? If not then this is a reassessment that is going to be essential for keeping your finances in order.
Stay on top of your income and outgoings
Budgeting gives you control when it comes to finances and is an essential part of financial housekeeping. Make sure you know what’s coming in every month – and that you’ve estimated your outgoings so that there are no nasty surprises or white knuckle moments.