13 October 2022: Spring is finally here, and it’s a good time to do a thorough financial cleanup and address any lingering mess.
Spring cleaning your finances is all about brushing off the dust that settled over winter to uncover a cleaner, fresher and healthier financial environment. WesBank, the country’s leading provider of innovative vehicle and asset solutions, offers some tips on how to go about spring-cleaning your finances.
Declutter your debt
In the spirit of cleaning up, prioritising your debt in the order of how you want to pay it off is a good starting point. Mounting debt built up throughout the year can be paid off with your annual bonus or tax return, for example. The short-term goal is to clear as much debt as possible and get back on the path to financial freedom.
Track your spending
Although not considered fun, managing your finances does give you a realistic understanding of your income and expenses. The first step is to go through your recent bank statements and track all the ‘nice to haves’ spending you’ve made. The second step is to eliminate any unnecessary expenses, including all those ‘hidden’ costs such as memberships you aren’t using, coffee on the run, Uber rides and take aways. It is important to be honest with yourself and include all these costs. Lastly, don’t spend more than you have. After eliminating all the needless spending, try and keep your standard of living within your budget.
Groom your spring budget
Once you have your monthly finances in order and your debts paid up, it’s a great time to start thinking about saving for your short- and long-term goals. Your short-term goals may include a much-earned holiday, while your long-term goals might focus on saving up for a deposit on a vehicle, for example. Either way, achieving each goal will require financial discipline on your part. One of the most reliable saving methods is to open a bank account. Most banks allow you to transfer money between your cheque and savings accounts, so you can select how much you can afford to save each month. Some banks also have the option of splitting direct deposits so that a portion of your salary gets paid directly into your savings account. Do some research to find the bank account that best suits your saving needs.
“This time of year is traditionally a time for spring cleaning, refreshing, and rejuvenating. It’s also an opportune time to review your budget and create a workable financial action plan. Most of us are overwhelmed at the thought of spring cleaning our finances, but the benefits include feeling organised and in control of the budget,” says Kutlwano Mogatusi, WesBank Motor’s Communications Specialist.
“However, it is important to ensure the task is carried out honestly and realistically. Be sure to take into account all your monthly income and expenses. Make some provision for any unexpected costs that may arise, while also saving for those short-, medium- and long- -term financial goals.”
