Money tips to give your personal finances a spring clean-up

Spring cleaning can be a bigger focus for many Australians this year, and here’s how to make it work for your money.

Extra cash can be collected by those who begin a September financial clean-up.

Winter is history, and spring cleaning is on the agenda for Australians with more time on their hands than usual.

Including some financial cleaning in your to-do list can reap large long-term rewards, so try these five tips from personal finance experts.

1. SPENDING CHECK

Households that haven’t suffered an income cut are finding themselves financially stronger during the pandemic as travel and leisure expenses remain on hold.

Sort My Money founder David Rankin says lunches, coffees and convenience foods on the way to and from work are no longer eating heavily into many household budgets.

“What are you no longer spending money on every day that you are not really missing?” he says.

Crystal Wealth Partners executive director of financial services John McIlroy says now is the time to assess your spending – “what was essential and what could be cut back”.

Sort My Money founder David Rankin suggests examining motoring, health and beauty costs.

2. SUPER STRATEGIES

Your superannuation is your money too, so now is the time to make sure it’s working for you, McIlroy says.

“If you have multiple accounts then you are just paying away your retirement savings in additional fees,” he says.

“It is simple and easy to consolidate. Make sure your investment choice suits your goals and check you have adequate insurance cover.”

3. POLISH YOUR BANKING

McIlroy says deposit interest rates are at record lows so it’s worth considering investing money elsewhere.

“There are low-risk options that can give you returns of 3 per cent plus so it is worthwhile to get some advice about whether these options are suitable for you,” he says.

Rankin says people with direct debits flowing from multiple accounts could switch them all to just one account.

“By doing so, you also get to choose which payments to keep and which ones to cancel,” he says.

4. DRIVE DOWN MOTORING COSTS

Do you have multiple vehicles sitting unused at home, and is this trend likely to continue?

Rankin says it’s only once you no longer use your car daily that you realise just how much you spend on running and parking it. “Is it possible to avoid – or minimise – these costs in the future?” he says.

5. BEAUTY FOR LESS

“Because gym memberships, brows, waxing, nails and pedicures are costs and appointments that tend to be on autopilot, they soon add up,” Rankin says.

“Is it possible to get by without them? Or at least to reduce the money you spend on them?”

Originally published as Money tips to give your personal finances a spring clean-up