Making Sure Your Personal Finances Are in Order

This week saw the start of the new financial year. For me that means lovely new spreadsheets, sorting all my income and expenses out and filing my tax return, even though I have until January to do this, I always like to start the next year off with a clean slate and do it as soon as I possibly can.

Even if you’re not a business owner you can also use the start of the financial year to give your personal finances and purse a spring clean.

You could think about

Checking your credit score

You should check your credit score on a regular basis if you are looking to obtain credit in the near future. It will give you pointers on what you can do to improve your rating such as being on the electoral register, how many credit accounts you have open and their limits. It can also show you any areas that are having a bad impact such as defaults, CCJs, and if you have been or are currently bankrupt. You can also make sure that only things you have applied for are on your credit file too I know of a few friends who have in the past found out that they were victims of fraud because someone had been using their details to obtain credit.

If your credit file is in a bad way, you need to stop applying for credit as this will just make it worse. Stop spending on any forms of credit you have if you can as when you make repayments this will show lenders that you can afford the debt you have.

Doing some research

Gaining knowledge about finances can be daunting if you don’t know where to look especially if you run a business and you are planning to do all your own accounts. If this is the case and you’re looking for inspiration you should research a professional such as Rusty Tweed who has successfully built up his own business.

Updating your budget

If your earnings have recently changed now is a good time to sit down and work out your total monthly income and expenditure. You can use a spreadsheet on a tablet or computer if you like a nice neat list or just use a notebook and pen. Each month I have a list and tick off each bill as it comes out of the bank that way I know when they are all paid and how much money we have left to last us until one of us is next paid.

Change your shopping habits

If you find money is a little tighter than usual, think about how you shop. If you make lots of trips a week consider condensing them to only one trip and make a list before you go that way you will only buy what you need rather than guessing or filling your trolley with things you don’t need. If temptation is too much for you you could shop online that way you can only add the things that you need.

Have you been giving your finances a polish? If so. I’d love to hear about it in the comments below.

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