4 Money Management Tips to Spring Clean your Finances

Do you relate to signing up for multiple financial services and products, which made sense at the time, but you no longer need, or even forgot that you had? That product which offered additional insurance cover, but you’ve never used, or the subscription that over time you'd forgotten about. Now, as you're working on your plan to start investing, it's the perfect time to evaluate and get rid of those services which no longer make financial sense for your lifestyle today.

With these 4 simple steps you can redirect that money to better use:

1. Cancel those unused monthly subscriptions / Direct Debits

We all have them, those payments going out of our account on a monthly basis for services we no longer use. Take the time to assess all the financial products that you’ve acquired along the way, this includes insurance policies, credit cards, and subscriptions that you have. View your monthly bank statements, your mobile payment services (like Google or Apple Pay) and determine which products you’re using and which ones you aren't. Some policies or subscriptions might have seemed like a good idea at the time, but by cancelling, you can free up money for other investments.

2. Paying for the same insurance cover more than once?

It's essential to think about overlap when it comes to your financial products. Are you receiving cover for the same services on your bank accounts, credit cards, or membership services? By doing a bit of research, you might find that you receive the same cell phone insurance cover from your cell phone provider, your credit card and your bank account. If so, and you’re paying a monthly fee for each of these products, work out which package gives you the best overall cover and cancel the others. Overlap can sometimes be useful, but if you're not utilizing each product, it's better to stick to one.

If you don’t know what you are covered for, reach out to your product providers and ask them to email you details of the package you are signed up for – at some point there will have been contract terms that you signed, or agreed to.

3. Streamline your Bank Accounts

The number of accounts you own will depend on your individual situation and your personal goals, at a minimum this should be at least one checking account and one savings account. You might also have separate accounts to spilt bill payments from personal spending, or short-term saving from long term savings. It is important to ensure that the benefits of the accounts you have outweigh any fees that may apply, particularly for those less frequently used accounts. Having too many accounts can become overwhelming, but different accounts can help you to organize and achieve your financial goals, so get wise about their purpose, if they no longer serve you, don’t overthink it, close them.

4. Consolidate or Negotiate

Once you're clear on the financial credit products that aren't serving you well, it's time to call your providers to cancel or consolidate. If you’re not in a financial position to do so, you can always try negotiating. Don’t be afraid to call your credit card company to renegotiate a lower interest rate. If it’s not possible to renegotiate, they will discuss other options to help you to get the best out of your credit arrangements. The chances are the company will want to retain you as a customer, and that can work to your advantage.

However, when it comes to decisions about your credit management, keep in mind that maintaining cards which you have held for a long period of time and managed well can help increase your credit score. It shows potential lenders that you are capable of managing debt responsibly over a long period of time and makes you a more attractive candidate for future lending.

When it comes to your finances loyalty isn't always the best policy, so don't be afraid to drop those products which no longer make financial sense. With fewer monthly expenses, you can have more disposable income to put into savings or investments. After all, the real goal is to get your finances streamlined, so that you can put your money towards a purpose which matches your goals.