Get your finances in order before the end of the year

The holidays are a time for celebration, family and giving, but they can also be a time when our finances take a hit. From gift shopping to parties, travel and vacations, it’s easy to blow the budget over the silly season. 

Giving your finances a spring clean puts you in a much better position to enjoy everything the holidays have to offer without financial stress. Plus you’ll be ready to start the new year on firm footing. 

We’re all guilty of making decisions for convenience or putting off changing our energy provider or shopping around for a better mortgage rate because it seems too hard. But a little bit of effort now can make all the difference down the track. 

Just like you’d bust out the mop or vacuum for a bit of spring cleaning, here are some easy things you can do to keep your finances in order. 

What quick savings can I make?

Many of us are paying the ‘convenience tax’, spending too much on utilities or similar products when there are better deals out there. Once you start identifying ways to save and see the impact it has, you’ll feel empowered to make more changes. 

Update any subscriptions or memberships

A good place to start is to pull out a few months of your bank statements and look at the monthly charges. There may be subscriptions you’ve forgotten about, or ones you could give the chop. You can also look at deals through your bank or telco which might allow you to package some of your subscriptions for a saving. 

Compare your utility providers

This one often goes in the too hard basket for people, but utility providers offer attractive  bonuses to new customers. 

Providers have had to make it much easier for people to switch in recent times, and there are a number of comparison calculators available for different utilities, so it’s just a case of finding the best provider for you. If you need some help, talk to Compare Club to find you a good deal for your energy. 

Top tip: before you take the plunge and switch, talk to your provider to see if they can offer you a better rate. They don’t want to risk losing you so it’s in their interest, but if a better rate is not possible then you can switch with peace of mind. 

Are you getting the best mortgage rate?

If you’ve had your current mortgage rate for a while, there’s a good chance refinancing could be beneficial. The first thing to do is to compare your current rate to others available to see where you stand. If your rate looks pretty good, you’re probably okay, but if not you can start by speaking to your lender about your options, or the home loan experts at Compare Club.

Even a small reduction in your interest rate can lead to significant savings over the life of your loan, so this is a small change that can have a big impact on your finances. 

Be aware: refinancing a home loan could mean extra costs such as discharge fees from the existing lender. Find out what fees you could be up for before going ahead. 

Don’t forget insurance policies

Falling into the habit of auto-renewing your private health, car insurance or home insurance can prove a costly mistake. While comparing policies from different providers can be tricky, ensuring you have the correct cover can result in big savings. 

From changing the frequency of your payments, to increasing your excess, there are many ways to save even without changing your policy. Compare Club can show you the fuss-free way to find the best plan for your health insurance and car insurance. 

Best bang-for-buck changes you can make

Now that we’ve covered some quick ways to boost your bank account, the next step in a proper spring clean is setting yourself up for a prosperous future. These aren’t tips that will pay off immediately, but they’re worth doing while you’re tidying up your finances.

Refinance or consolidate your debt

High-interest debt, such as credit card balances or personal loans, can be a big drain on your finances. Look into whether consolidating your debt through a lower-interest loan or refinancing existing loans could save you money. You can also balance transfer to a credit card with a low introductory rate, but make sure you’ll be able to pay the debt off within that period. 

Wrangle your super

If you have multiple super funds, you should consolidate them – and it’s easy to do. 

You just need to provide your current provider with some details for them to do a sweep and they’ll let you know how many accounts you have and how much is in them. Or you can also find lost super online via myGov. 

The sooner you roll your super together, the longer your super has to compound, and the fewer fees you’ll be paying, so it’s good to do this early on in your working life. 

Make a budget

Budgeting sounds exhausting, but it can be made simple. There are apps and digital tools such as PocketSmith and WeMoney to make it easy. 

If you prefer not to connect your bank account to a third party app, you can download bank statements and enter them into a budget spreadsheet. Google Sheets has some user-friendly budget spreadsheet templates. 

Budgeting is one of those tasks whereby you can review a couple of months of bank statements at a time. You can create some ‘buckets’ to track your spending so you’ll know where you’re spending such as on entertainment, dining or groceries – to name a few. 

Putting together a budget can also help you set up an emergency fund and make you feel more financially secure about how your cash flow is tracking.

Keep an eye out for sales

As we head into the summer sales season, being smart about your spending can really stop your bank account running away from you. 

One way to tackle the sales is to make a list: 

• What do you absolutely need to buy?
• What are the items you want but are not essential?
• What gifts can you purchase on sale and within a gift budget?

By thinking this through you can keep yourself ‘in check’ so you’ll be in a better place to resist temptation – in other words – refrain from extra spending.  

Tip: it pays to keep an eye on prices of any items you intend to buy before the sales start. Sometimes the advertising can make discounts look more impressive than they are. 

By tidying up your finances before the holidays, you can enjoy the season with less stress and more joy. While spring cleaning your finances might not be as fun as decluttering your home, it can be even more rewarding, and help you start the new year on the right foot. 

By reviewing your mortgage rate, insurance policies, and overall financial habits, you’ll set yourself up for long-term savings and greater financial security. Taking these steps will ensure your finances stay healthy and resilient all-year-round!

Article originally published on Expert Analysis.

What do you need to do to get your finances in order before year’s end? When was the last time you compared your utility or insurance bills? Let us know in the comments section below.

Also read: This is why your insurance premiums keep going up

Financial Disclaimer: The information contained on this web page is provided by Compare Club Australia Pty Ltd, authorised representative of Alternative Media AFSL number 486326. It is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should consider whether the advice is right for you and refer to the Product Disclosure Statement before making a decision in relation to a financial product.