It’s not just homes and offices that become cluttered; our finances can become cluttered too. If you do a fiscal audit and de-clutter your finances, then you will save precious money and precious time.
Ancient Saving Accounts
Many of us possess several savings accounts. We opened them in a fit of optimism, intending to put money aside every month for a rainy day, or a better future. Often we go off the rails and stop saving after a few months, or we find another account which offers a better interest rate, but we neglect to close the first one. These unused accounts are doing us little good and are cluttering up our finances.
Close all of the savings and bank accounts that you don’t use and that have just a few pounds in them, in order to tidy up your financial life. Just have one good savings account that pays a favourable rate of interest and start saving regularly; even a small amount will do. If you have enough savings to want to spread them around a little then open a second savings account. But only have accounts that you actually use.
Dormant accounts are pointless, clutter our minds, and if you have to fill in a tax return will make it more complicated than it needs to be.
The Credit Card Stack
If you have enough credit cards and store cards to shuffle them, then you have too many. Most people only need one credit card, or two at the most, and any more is asking for trouble. The more cards you have, the more tempted you may be to spend on them, and the bigger problems you would face if you did!
A credit card is useful for emergencies and for buying goods on the internet, but it’s when we start using them to buy things we can’t afford that the trouble starts. What happened to the good old days of saving up until we could afford something and then going out and buying it? We could do a lot worse than adopt this sensible philosophy to spending!
Naughty Store Cards
Store cards are even worse as they tend to have very high rates of interest. The shops lure us into taking out their store cards with the promise of a discount on our shopping. Once we are in possession of it we are exposed to temptation, as we are faced with a store full of delightful and pleasing goods we cannot really afford.
The less cards you have the less likely you are to get into debt, you wallet won’t be so heavy that it weighs down your pocket or bag, and your finances will be simpler.
Forgotten Standing Orders
How many standing orders and direct debits go out of your bank account that are unnecessary? Are you paying out every month for a gym membership you never use, a magazine you never read, insurance you don’t need, or a charity you no longer support?
Stop! Just because the money goes out automatically we don’t appear to notice it, but it’s still happening. Why waste money on things you don’t need or use? Cancel the direct debits and standing orders you don’t use and you will save money and de-clutter your finances all at the same time.
Don’t Automatically Renew
Another big money waster is allowing things like car insurance to automatically renew. Being lazy will cost you money. All the best deals are reserved for new customers and loyalty doesn’t pay. This applies to most types of insurance; so shop around every year at renewal time and find the cheapest quote for similar cover.
It’s not just insurance that could be charging you too much. Check with your utility company if you are on their cheapest tariff and if you are not ask to be put on it. If that still sounds too expensive then shop around for a cheaper quote from other suppliers.
A Pecuniary Audit
Carry out a pecuniary audit and de-clutter your finances. By streamlining your bank accounts, your credit and store cards and your direct debits, you will save a surprising amount of money, and your finances will become so simple that even you will understand them.
Just don’t spend the money you save on clutter!