6 Steps to spring clean your finances

September 02, 2016
Filipa Ferreira

There are few seasonal rites as satisfying as spring cleaning, however much you loathe it, these annual fits have a markedly positive effect.

Regardless of how hard it is to give up time you’d rather be spending outside when the weather is finally warm, there are very few things better than the amazing fresh-start feeling you get after blowing the dust off everything.

Well the same applies to your finances. With Tax time behind your back, and having gone through all your financial paperwork this is the ideal time to organize, simplify and set up your finances.

Create an ICE (In Case of Emergency) folder

If you manage the finances of your household you should create a folder that has all the information necessary to manage your finances should anything happen to you. This folder can be in paper form or digitally kept on your computer. If you’re not the “finance manager” of the household ask that person to create an ICE folder. In the event of an emergency this could make life a lot easier.

Compile your Tax information

Most of you critical personal and financial information can be found in just a few documents. Keep tax file numbers, copies of payslips, payment summaries and copies of tax returns in a safe place, if at any time you need to refer to them they will be all together in the one place. Remember this can be in a digital form for ease of access and transport.


Shred paperwork you no longer need

The Australian Taxation Office requires keeping tax returns and supporting documents for seven years, however documents like birth and marriage certificates, death certificates, divorces decrees, wills and property titles for example you should keep forever. Vehicle Rego documents, Insurance policies and Home Loan documents you should retain as long as they are valid.


Review your expenses

 Get the statements out and review all your expenditure over the past 6 months. Go through the bank statements and the credit card statements and highlight with different colours three types of expenses: necessary costs (utility  bills, insurances, groceries, fuel), items bought because you really wanted or needed them (the cable TV subscription, the vacuum cleaner you bought because it eases your allergy symptoms or that kitchen appliance that makes your daily cooking that much easier) and last but not least the less thoughtful purchases (that pair of shoes that looked amazing on the shop window but is very uncomfortable, that round of drinks you bought at a happy hour). This will help you visualise how much is spent on stuff you don’t really need or want.

Check your insurances and your loans

Do you have income protection? Have you done a home renovation in the last year that increased the value of your home? Make sure your homeowners’ policy has been updated to reflect it. Shop around and make sure you’re getting the best rates on home and auto coverage. Review you home loan and ensure your loan is the one that best suits your current situation. Too many repayments happening maybe it is time to consolidate the existing debts.  Mortgage Choice in Miranda can help you review your current loan(s) and insurances at no cost to you. Call us on 9526 7888

Review your retirement plan

Have you reviewed your retirement plan lately? Take a close look at your current superannuation and check that it is on target with your retirement plans, consider making extra contributions to your superfund, sit down with a financial planner and draw up a plan that will allow you to enjoy your retirement the way you dreamt of. Mortgage Choice Miranda’s financial planning service can help you achieve the retirement you have always dreamt of. Don’t wait any longer call us on 9526 7888 and spring clean your retirement plan.


Mortgage Choice in Miranda has been servicing Gymea, Caringbah, Cronulla and surrounding suburbs for 15 years, our industry experts can help you on your financial spring clean, call us on 9526 7888 (or use the orange button on the top of the page and we will contact you) for your obligation free consultation with one of our team members.

Posted in: Tips

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