How to Spring Clean your Budget

As spring arrives, it’s not just our homes that could use a thorough cleaning – our budgets could use a bit of sprucing up too! In this post, we will explore how to spring clean your budget by taking a proactive approach to refreshing your financial health and stability.

You may believe that once your budget is up and running then all you need to do is follow it. But this can lead to a stagnant budget that simply doesn’t work for you anymore. Life, priorities and spending habits are all constantly changing, meaning your budget needs to change too.

Today we will look at some key ways you can re-assess your budget, consolidate your funds and make sure you are saving as much money as you can.

By regularly assessing and adjusting your budget, you can ensure that it aligns with your evolving financial goals and lifestyle changes.

I know dealing with your finances can be intimidating or boring at times, so I have tried to make these steps as simple and engaging as possible. Don’t get me wrong, none of these steps are going to make you a millionaire this year. But by staying on top of your financial health now, you can set yourself up for a positive financial future.

Let’s dive into the spring cleaning and get your budget and finances in tip-top condition ready for the warmer months!

Check Your Spending

First things first – you need to take a close look at your spending habits. This can definitely be scary, especially if you have been avoiding opening your banking app! But trust me, you will feel better afterwards!

Review your banking and credit card transactions to identify how you are doing with your current budget and if you have any new spending patterns. Perhaps in the last few months you have had a few too many “little pick me ups” or maybe you didn’t realise you need to pay off a big bill.

By checking your spending first, you can then tackle your budget with all the information you need. It is important to check your spending regularly as you would be surprised how quickly new spending habits can form.

Once you know what you have been spending on then you can reassess your budget and see if you need to be more strict with yourself. Who knows, maybe you can afford to be a little less strict – that would be a lovely surprise!

Cut Down Your Direct Debits

Automatic payments and subscriptions can quietly chip away at your budget without you even realising it. And some of the time, you’re not even using the service you are paying for!

Did you know that almost half of us waste money on unused subscriptions every month? In fact, research has found that on average, households waste £170 every year!

That is a lot of money to waste on something you are not using. So, check your bank account and assess how many subscriptions and direct debits you have, and which ones are just not worth the money for you anymore. Simply cancel them and that will be a quick and easy way to save money and spruce up your budget.

You could even renegotiate the cost of some direct debits, whether that be for your household bills or other subscriptions.
Personally, I have now changed all my subscriptions to the lowest cost option. Most of the time this just means having adverts in all of your shows, but in my opinion saving the extra money is totally worth it!

Readjust Your Budget

Now you have checked your spending and cut out some unnecessary costs, it is time to properly reassess your budget.

Budgets are not set in stone – if you want to make the most out of them and save the most money then you need to regular readjust your budget.

That means getting back to basics and reviewing all of your budget categories and spending allocations for each one to ensure they reflect changes in your income, expenses, and financial goals. This doesn’t have to be long-winded. Just take it step-by-step and your budget will soon be working for you again.

Most importantly, don’t forget to allocate a sufficient portion of your income towards your savings or debt repayment. This will ensure that you are always moving forward towards a better financial future.

Are Your “Wants” Still Bringing Joy?

An important part of your budget is your “wants”. These are the things that you certainly don’t need to survive, but like to buy to enrich or enhance your life and happiness. Personally, the majority of my wants include books, some makeup and the occasional concert.

So, as you work to spring clean your budget, it is only right that you spring clean your wants too. It’s easy to get caught up in the cycle of consumerism and just carry on buying what you always bought, but are these purchases still bringing you happiness?

Take a moment to reflect on your spending habits, maybe go look at your latest purchases and decide whether your “wants” still align with your values and priorities. Maybe paying to get your nails done no longer feels necessary to you. Or maybe you are less interested in spending all your spare income on concerts now.

By consciously asking yourself if your purchases are bringing you joy, you can get out of the loop of unconscious buying and start spending intentionally. This will really help to streamline your budget and save you money!

Have Your Financial Goals Changed?

Life is constantly changing, so it makes sense that your financial goals might too. I have always said that setting long term goals is essential to keeping you focused and helping you reach where you want to be. But that only works if your goals are the same.

A lot can change in life and many of these things can result in a dramatic shift in your financial situation. It is crucial that you check that the financial goals you set for yourself are still relevant to you and where you are in life.

Whether you are aiming for complete financial freedom, a debt-free life, or just being able to take an annual holiday, make sure whatever long-term financial goals you readjust truly inspire you. And don’t be ashamed if you need to rein in some of your goals to make them more achievable. Being realistic but optimistic is the best way to hit your targets.

Take the time to revisit your objectives and assess whether they are still relevant and achievable. Adjust your goals as needed based on any changes in your circumstances or priorities and make sure your goals will help to keep you focused and motivated.

Consolidate Your Cash

In our increasingly digital world, it’s easy to forget about physical cash. But cash can help boost your budget when you least expect it!

When you are out and about and pay with cash it is easy to think that it doesn’t count. I have to say I am very guilty of this. “The money was never in my bank account so maybe I didn’t technically spend it…”

As great as it is to not see your bank balance go down, it is still crucial that you keep track of your cash spending. This way you will know exactly what money you have and exactly what you have spent that month. This, in turn, will help you plan and budget for the next month.

If you have been part of the contactless crew for a while now, I strongly recommend you look around the house, dig into old jackets and purses to see if you have any cash lying around. Have a real spring clean to help you spring clean your budget! You will probably have more than you think! And in the world of budgeting, every penny counts!

Check Your Emergency Fund

An emergency fund is your safety net in times of financial uncertainty, so it’s crucial to ensure it’s adequate. If you haven’t already heard me banging on about the importance of building an emergency fund then you must read this post once you’re finished here!

As you spring clean your budget, it is imperative that you stop to check how your emergency fund is coming. Are you still contributing to it regularly? Have you reached your target amount? Did you have to dip into it? And does it need replenishing?

Assess the status of your emergency fund and replenish it if you can so that in an emergency you can cover any necessary, unexpected expenses. This is the number one way to ensure the security of your financial future.

Plan for Summer Fun

Finally, don’t forget to budget for some summer fun! The best part of spring cleaning your finances is that you can make sure you are all set for an epic summer!

Just because you are on a budget, doesn’t mean you can’t live your best life. After all, budgets are not about restricting yourself; they should help you be mindful with your spending whilst still including room for enjoyment.

If you don’t budget in for hobbies and summer occasions now, then you are much more likely to resent your budget and eventually throw in the towel.

Don’t let your budget dictate your happiness.

Planning summer fun into your budget is a great way to stay mindful of your spending but still have a great time. In fact, I have created a whole post on how to have a social life when you are on a budget so make sure to have a look for some inspiration.

So, plan ahead and set aside funds specifically for summer activities and vacations to avoid overspending and financial strain.

Conclusion

Spring cleaning your budget is a proactive way to enhance your financial well-being and ensure that you are on track for a bright financial future

By following these comprehensive steps to spring clean your budget, it is my hope that you can feel more equipped to tackle your finances over the coming months. Don’t forget, your life and finances are always changing, so you need to make sure you change your budget to suit your needs.

Personally, I love taking the time to spring clean my finances as afterwards I know exactly where I am and exactly what I need to do and what I can spend over the summer. This actually gives me more freedom to enjoy the summer as I don’t have to feel guilty about my spending!

Embrace the opportunity to refresh your finances this spring so you can reap the rewards of greater financial freedom and peace of mind in the future.

Have you ever spring cleaned your budget? Let us know in the comments below and feel free to share any more budgeting tips!