Is it time for a financial tune up?

The changing of seasons is great for throwing out old clothes and decluttering your drawers, but beyond the shoes you haven’t worn for months, how about decluttering your finances?

Let’s be honest: our plans and goals often change from the start of the year. Life's constantly changing, and our circumstances can sometimes mean we need to refocus and adjust our goals – even when it comes to our finances. When the year starts, we give ourselves financial goals and targets. Maybe we want to save a certain amount for a holiday or a big purchase. When we make these goals, it's the top of the year and it feels like a blank slate.

However, despite starting the year with a fresh home, we often end up hoarding and collecting useless items over the course of the year and finding ourselves overwhelmed with 'stuff'. Sometimes, our money situation can look the same. A financial check-in is a good idea to ensure you assess your financial goals and clear out any unhelpful financial habits you’ve picked up along the way. These might include cancelling old subscriptions or paying off a debt.

Here are some ways you can freshen up your finances and help meet your goals.

Big spender?

When reviewing your situation ahead of refreshing your financial goals, at the top of the list is taking stock of exactly where you are right now. How has your spending been so far this year? Are you spending too much and putting away less than you intended? If so – assuming you can't cut costs – perhaps look at changing how much you want to put away each month and give yourself a realistic, achievable target. This small win will have you feeling more confident as time goes on.

The good kind of shopping

Throughout the year we start to notice price hikes for our most essential bills. Although it can be a bother, shopping around for better deals on things like your broadband, subscriptions, utility bills and mobile plans can be a great way to save money and help you reach your financial goals. If you can't reduce the cost of these things, take it as an opportunity to adjust your budget.

Not-so-free trial

We’ve all done it – subscribed to something for the 7-day free trial, gone on blissfully with our lives and never returned to it, only to be mortified when we’re hit with the cost of the monthly subscription or, in some cases, a yearly one. If you’re lucky, you’ll spot this immediately; otherwise you may be in for a shock months down the line. Your mid-year financial check-in is a great time to comb through statements and cancel any subscriptions you don’t use or don't remember signing up for, before you’re locked in.

Decluttering debt first

Debt doesn’t have to be scary, and it doesn’t have to derail your financial plan. Things happen during the year that we can't predict, so if you've had to pay for something on a credit card, don't feel bad. When doing your mid-year financial decluttering, take a debt-first approach, which means finding ways to pay down your high-interest debts to get back on track. Even from a mental health perspective, once you’ve cleared some of your most anxiety-inducing debts, you'll feel better able to tackle any other issues you might have.

Credit check

How is your credit score looking? Are you afraid to check? Don’t be – you could be missing out on a win. An effective financial declutter has got to include checking in on your credit score and implementing ways to improve it, if needed. A strong credit score is significant if you have big-ticket purchases for the year. You may need to borrow, and a good score can often put you in a better position to get a more favourable deal from creditors.

These are just a few ways to ensure that you're adjusting your goals to account for the unexpected changes that happen during the year. It’s important to be kind to yourself and tweak your expectations when necessary. You can’t predict the future, so making time to create a manageable pathway to your goal is a sound priority. Get decluttering today!

To support customers with actioning their budgets, Chase lets you set up multiple current accounts, up to 20 in total. Since you can spend from these directly, they might help you track your spending throughout the month.

18+, UK residents.

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Disclaimer: The Hub is intended as a knowledge portal to provide information on a range of topics, including financial products. Articles may reference products and services that Chase UK does not currently offer. This article is for information only and does not constitute financial advice.