Revive your Finances this Spring

It’s time for a financial spring clean!

If you’re based here in the southern hemisphere than you too will be celebrating the fact that spring has most certainly sprung! They days are longer, flowers burst with colour and the birds seem to chirp that little bit louder. Everyone is excited for the warmer weather as we shake off those winter blues and layers! Spring is also the perfect time to let a little financial self-care bloom in your life. It’s a timely check in for you finances to make sure they’re in tip top shape as we head toward the end of the year and the summer holidays.

Dust Off Your Budget - It's a Living Document

First things first, it’s time to review your budget, or spending plan as I like to call it. Your budget isn't a static, set-in-stone document. It's more like a living, breathing entity that evolves with your life. It’s especially important to review and update your budget in the context of the increased cost of living. This year everything from the cost of buying weekly groceries, to medicines at the chemist, fuel, accommodation costs and utilities have all increased in price thanks to this thing called inflation. If left unchecked your every day bills and spending could be blowing out and compromising your ability to save, invest and maintain financial wellbeing.

When conducting a budget review, your goal is to confirm whether your income and expenses are accurately reflected. Reviewing a few months of bank transactions can give you this insight. Then update your budget to align with your current financial situation. Remember, life is full of financial fluctuations, so don't be discouraged if things have increased in costs. This is an opportunity to adjust and realign your spending to get back on track

Reprioritise Expenses 

Now, let's talk about those expenses that may have lost their value or relevance over time. Go through your expenses with a discerning eye. Are there any monthly subscriptions, memberships, or services that you no longer use or find valuable? According to research from Finder, the average Australian wastes $1200 a year on unused subscriptions and services. That’s some serious cash! If you’ve got any unused subscriptions or direct debits in your budget then it's time to consider cutting the cord and cancelling these. At the very least, it’s time to look for a better deal!

Whilst reviewing your expenses, identify if your money is being spent on things that truly bring you value. Ideally, you want to allocate your resources toward expenses that truly matter and align with your financial goals and priorities. This way, you're ensuring every dollar spent serves a purpose and is giving you bang for you buck. Here’s a couple of examples of my personal values aligned vs non-values aligned expenses. Paying my mortgage brings me security, getting my hair cut and coloured is self care, my gym subscriptions support my health and longevity which all align to my values, goals and priorities. Money I spend on parking fines, ubers because I was running late or take away because I had meal prepped aren’t aligned to my values, goals and priorities so I try to eliminate and limit these.

Reconnect with Your Financial Goals

Speaking of your financial goals, spring is an ideal time to revisit and reaffirm your financial goals. So pour yourself a cuppa and take a moment to check in on your financial goals. Are you on track to achieve them, or have they evolved over time? Adjust them accordingly to stay motivated and focused.

Don’t forget to break down your long-term financial goals into smaller, achievable milestones. By splitting your goals into incremental achievements you can more easily track your success and build motivating momentum. Be sure to celebrate each milestone you reach it too. Progress is worth celebrating!

Reward Yourself for practising Financial Well-Being

Last but not least, don't forget to pat yourself on the back for practicing financial well-being. I mean it. Acknowledge your financial achievements, no matter how small they may seem. Each step you take toward better financial health is a reason to celebrate. When you take care of your money, it takes care of you. So consider giving yourself a little treat or indulgence as a reward for your financial diligence. It's a great way to stay motivated and maintain a positive relationship with money.

A financial spring clean is all about revitalising your financial well-being. It starts with reviewing and refreshing your budget, ensuring it adapts to your evolving life. Reprioritising expenses helps you allocate resources where they truly matter. Reconnecting with your financial goals keeps you on the right path, and rewarding yourself along the way makes the journey enjoyable. So, embrace the season of renewal, and let your finances bloom with financial self-care!