Financial Spring Cleaning Tips for Gen-Y
There are many good reasons to ‘spring clean’ finances, and there are some particular areas that should be of definite focus for Generation-Y.
To spring clean effectively, it is important to take stock of the number of bank accounts held by an individual and analyse whether they truly offer great value, particularly in terms of fees on deposit accounts.
Of course, the amount of money going out needs to be carefully reviewed. Credit cards, store cards, loans and mortgages need attention, as do the types of debt that an individual has. The interest rates being paid for various debts must be checked with care so that the person is not paying more than they need to.
Protection in the form of insurance is incredibly important. As part of a financial spring clean, it is wise to ensure that the appropriate amount of personal insurance is held, together with motor vehicle insurance and, if applicable, home and contents insurance.
The personal budget should also be scrutinised and modified as part of a financial spring clean. Real-life earning and spending habits should always shape a budget, and it is essential to know precisely where money is spent – especially with Christmas (one of the most expensive times of year) fast approaching.