As we move through spring, it’s time to dust off the money plan to prepare for the upcoming Christmas and summer break. Here are some tips to get started.
As spring re-introduces warmer, longer days, it also brings the opportunity to clear out unwanted messes – including when it comes to personal finances.
If your expenses have been building over time, consider a financial spring clean with these ideas.
Review your spending
With prices still high, it’s easy to let spending creep above the budget without even realising.
Thankfully, it’s also fairly simple these days to figure out where the money is going and take charge of future spending. Ask your customer-owned bank for a statement of the past few months and consider going through and putting spending into categories. Then, it’s a matter of deciding where you can cut back. Entertainment and dining out are often popular choices.
Cancel under-used memberships and subscriptions
During the colder months, it’s not uncommon to load up on subscriptions for streaming, audiobooks, or music to enjoy a bit more home-based entertainment. Now that the weather’s warmer, think about doing a paid-app detox and potentially spending more time in the evening outside instead (if your local climate permits).
You could also consider ditching the gym for park-based exercise, which has the added benefit of vitamin D.
Start planning for summer
If you can believe it, summer is just a couple of months away, which means it’s time to start thinking about Christmas and taking some down time.
Consider revisiting how much you spent last year and coming up with a budget for the 2024 silly season. Tips to cut down on costs include asking guests to bring a plate, making homemade gifts, doing Secret Santa, and buying gifts online ahead of time.
Look for deals
If your energy and insurance bills came in a little high, think about using your financial spring clean to shop around for deals. Comparison websites, such as the government’s Energy Made Easy (for certain states and territories) and PrivateHealth.gov.au, are good places to start.
If you’re a mortgage-holder, think about speaking to your customer-owned bank about whether you’re on the right rate for your situation; for example, you may be able to save with a no-frills loan, if you have a loan with features you’re not using.
Check in on your savings
While you’re in financial spring-cleaning mode, it’s worth taking a look at your super and emergency fund to make sure both are set up the right way.
You can look at the competitiveness of your fund with the government’s YourSuper comparison tool, which will tell you how your fund ranks on fees and performance.
When it comes to savings and the emergency fund, check to see if you’re in a high-interest account. Some people also like to lock their emergency savings away in a term deposit to remove the temptation to dip into it. Again, you can speak to your customer-owned bank about this.
With a bit of financial spring cleaning, hopefully you’ll be ready to welcome summer with extra money in your pocket and a refreshed plan.