Decluttering seems to be a mania right now. We are all spending much more time at home right now, due to the global coronavirus pandemic. So it’s little wonder that this emphasises how clean and tidy it is. In a lot of cases, it seems that this has given people the focus and time to finally declutter the basement or Marie Kondo their closet. After all, spending so much time at home does . But now could also be the time to declutter a different area of your life – your finances. Many people are having to revisit their household budgets due to the impact of the lockdown – trying to reduce bills and put aside as much in savings as possible in case of job losses and other economic shocks ahead. Others are just seeing the time won back from the daily commute as an asset that they can invest in fine-tuning their financials and getting themselves into the best position possible with money. So if you fancy a payment declutter, where is the best place to begin?
Start With Statements
You should start your financial declutter with a thorough purge of paper. Gather together all the statements that you have and review each account. Create an overview of exactly what you have in savings, what credit accounts are still open, and what your spending habits look like. Sign up for paperless statements- these are much easier to file and search, as well as being kinder to the planet. Go through your latest bank statement and see where there are unused subscriptions you can pull back on. Similarly, if you have open accounts or lines of credits you don’t use, take the time to close them down. Have a look at what other bank accounts are currently on the market as well – could you get an account with better rewards, such as travel insurance and other perks?
Clean Up Your Credit Rating
One of the most important financial assets you have is your credit rating. This score is the basis for how lenders assess your applications, and it can make a massive difference in the rates you are offered, and so the amount that you will ultimately payback. Many of us inadvertently have mistakes or outdated information on our credit reports that could impact our scores. There are also many small steps you can take to better your standing in the eyes of lenders. Improve your credit score, and you could be set to save a lot of money.
Revisit Your Investments
If you’re having money invested, it’s also a good idea to make sure it’s working for you as hard as it can. Truly understanding where your money is and how much interest it’s earning you is critical. Consider dividing your investments among low-risk solutions that offer a limited return and slightly higher risk profile options, which can provide more. Find a good independent financial advisor to invest you if you have a decent amount.
A few simple moves could leave you in a far better financial position, and leave you feeling like everything is in order.
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