As the nights grow lighter and the weather (ever so slightly) warmer, Spring is finally here.
While the season offers the perfect opportunity to dust away the winter cobwebs in our homes and gardens, it also offers a chance to declutter our finances.
Yes, the thought of financial admin might seem like a headache but as Spring signals change it’s a time for us all to give our budget and spending a once over.
In fact, although it might seem like a distant memory many people are only just shaking off Christmas costs. According to research by our sister company Creditfix, 20% of people anticipated needing three months or more to settle their Christmas bills with some people admitting they’ll still be paying of Christmas 2023 this year.
Sound familiar?
Then it might be the perfect time to do a little financial sprucing.
Here we offer our top six tips to help you deep clean your finances to help you stay on track for or help you regain control of your money for the year ahead.
1. Refresh your budget
It’s no secret that having a budget in place is a vital part of financial health. With that in mind, keeping an eye on it should always be at the top of your to-do list.
Having a budget in place is the best way to make sure your money is working as hard as it can for you.
By knowing how much money you have coming in each month and where you spend it you can stay in control of your finances.
If you don’t already have one, setting-up a budget can be easier than you think.
The first thing to do is list your income – this may vary depending on whether you’re planning a weekly or monthly budget.
Next, make a list of all if your expenses. It’s a good idea to split these into essential costs, such as your rent or mortgage, utility bills and food expenses as well as other costs such as subscriptions.
Having all this information in one place will let you see how much you’re spending and how much you have left over for things like savings, recreational spending or repaying debt.
If you’re overspending, it’s important to find a way to cut back to avoid unmanageable debt in the future.
Debt help tailored to you
From writing off a large portion of your debt, to readjusting your budget, we’ll find a solution that suits you.
2. Review your spending
Now you have your budget in place, you can start to review your spending habits and check you’re on track to meet your financial goals.
Sometimes reviewing your spending throws up a few surprises. Be honest, if you’ve never used your gym membership will you ever? Do you use all four of your streaming services?
Never underestimate how much little changes can add up – especially when working towards a money milestone.
If your budget shows any unnecessary spending, don’t be afraid to make a change.
3. Check your benefits
Just as it’s important to have a budget in place to know where your cash is going, it’s important to make sure you’re getting all the money you’re entitled to.
Lots of people miss out on benefits they’re entitled to, including cost of living support and discounts on energy and transport, so it’s worth checking.
You may be able to claim certain benefits even if you work, have savings, or own a home.
You can check what benefits you may be entitled to using a benefits calculator. The Government has a free calculator that will help check what you’re entitled to.
It’ll give an idea of what benefits you could get and how much the payments could be. It’ll also give information about how your benefits could be affected if you start work or increase your hours as well as how they’ll be affected if your circumstances change, such as if you have a child or move in with a partner.
4. Improve your credit score
Checking your credit score can seem daunting – especially if you’re living with debt. However, it’s a good idea to know what the score is to put you in the best place to make positive changes.
Having a good credit score shows lenders that you’re able to manage what you owe and can help you access better interest rates and secure credit in future.
Knowing where you stand – good or bad – will give you an idea of how future credit applications could go.
Checking your credit score also allows you to spot problems such as fraudulent activity and look for any errors on your account such as incorrect personal details.
If you have a low credit score, which may be the case if you’ve missed payments on any debts you have, don’t worry. There are small steps you can take to improve your score and bigger ones like dealing with debt.
It can take time but it’s not impossible to repair a low credit score.
5. Revisit your goals
Did you make any financial resolutions at the start of the year?
If you did, now is a good time to check-in with your progress. If you didn’t, now is a good time to set yourself goals for the rest of the year.
You may be planning to save for a big life event such as buying a house, going on holiday or retirement. Or you may just be trying to get better at managing your budget or breaking the paycheque-to-paycheque cycle. No matter what, having a goal will help keep you accountable.
If you’ve fallen away from your existing financial challenge since the beginning of the year, it’s not too late to make a change and get back on track.
6. Manage your debt
It goes without saying, dealing with debt is important.
Even if you think that you’re in control of your debts, there are solutions that can help you manage what you owe.
At UK Debt Expert we specialise in providing free debt advice. We understand that talking about money isn’t easy, especially if you’re struggling, but we’re here to help find a way to better manage what you owe.
Our advisors will not only get to know you but about your lifestyle as they help find a solution that works for you. That could be a Debt Management Plan, a Debt Relief Order or an Individual Voluntary Arrangement – to name a few.
No matter what your situation, there is a solution for you, and our experts will help you find it.
