As we hit the halfway line in Spring, a lot of us feel the need to shed our winter skin and ready ourselves for a clear path ahead into summer. Sometimes we clean out the garage or purge unnecessaries from our wardrobes but perhaps this spring, you should look at spring cleaning our finances? We may not be Marie Kondo, the queen of declutter, but we can assure you that you’ll feel less stressed, lighter and more ready for the future months.
Receipts & paperwork –
For me, the accumulation of papers makes me loose my mind It’s a reality of adult life that despite how digital we get, we’ll always have papers, papers and more papers. Try to get a new filing system in place – just as some people become motivated by buying new activewear to encourage working out – maybe some aesthetically-pleasing boxes or folders could give you that extra motivation to sort through your backlog. Another way is to get paperwork off your desk and into the cloud! Some apps that might help are FaxFile, Mobile Doc Scanner, Genius Scan or Evernote.
Purge –
Go through old filing or papers that really aren’t required anymore. The ATO cites on their website that for records and receipts involved with your tax return, “you need to keep these for five years from when you lodge your tax return, in case we ask you to substantiate your claims.” So if there are any relevant records beyond those five years then you can say “sayonara.”
Dust off the old budget –
Budgets come with all good intentions but sometimes life can seriously get in the way. Especially if we’ve had to majorly deviate from your budgets, we tend to not look at them to avoid the guilt. But take a moment this spring to dust off the old budgeting framework and restart that structure behind your spending.
Set or check in on the progress of goals –
Or in case you’re actually just a financial wizard and budgeting is the least of your problems, check in on your progress towards your financial goals. How far from them are you? What’s getting in your way? Make some forward projections as to when you think you might be able to feasibly achieve those goals.
Plan super contributions –
If you have a Christmas bonus around the corner or are expecting a raise next year – from the outlook of October, you could plan ahead to make an extra superannuation contribution. This extra contribution could mean thousands and thousands more for you at retirement due to the beauty of compound interest. Another factor to keep in mind, is this small addition could significantly cushion your finances if you have to take time out of the workforce in future, for children or to take care of loved ones.
Automate your savings –
While you’re on this spring cleaning train, full of aspiration and motivation, why not automate your savings? Surely you can estimate an amount that you can allocate to savings each month with certainty. Even if that amount is $200. By automating the process, you might take the strain out of having to talk yourself into it and it won’t be figuratively be burning a hole in your wallet.
Review memberships/insurances –
Come mid-November and December, when the Christmas get-togethers start rolling and the work lunches are getting longer – how often are you really going to be heading to the gym? Maybe you could take a little three-month sabbatical from some memberships over Summer? Depending on your stage in life, it might be a good idea to review your insurance policies – including your healthcare, car, home & contents or life insurance.
I’m feeling lighter already…
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.
