BUSINESS NEWS - As the weather warms up, the days get longer, and the world around us seems to come alive. Spring is the perfect time to refresh and reorganise our surroundings, including decluttering our cupboards, dusting off shelves, and giving our homes a much-needed deep clean. 

This annual tradition of "spring cleaning" isn't just about tidying up; it's about creating a clearer, more organised, and more enjoyable environment.

What if you applied this same rejuvenating philosophy to your financial life?

Many of us treat financial planning as a one-time event - something you do once and then forget about. This approach can lead to what's known as "financial drift" – where your carefully constructed plan slowly falls out of alignment with your evolving life. 

A new job, a growing family, a big purchase, or even a shift in the economic landscape can all make your old financial plan less effective. The good news is that a quick proactive review can prevent this drift and ensure your money is still working for you.

Here are five simple, actionable steps to spring clean your finances and give yourself the peace of mind that comes with a fresh start.

Step 1: Declutter your budget

Just as you would sort through a messy drawer, start by reviewing your spending habits. Look at your bank statements and credit card bills from the past few months. Are there subscriptions you no longer use, items on your insurance policy that are not relevant, small, recurring charges that have gone unnoticed, or unnecessary purchases that add up over time? 

Cutting away this financial "clutter" can free up valuable cash flow that can be put toward your savings, investments, or debt repayment.

Step 2: Dust off your debts

Debt can feel like a heavy weight, and ignoring it only makes it feel heavier. Take a clear-eyed look at what you owe. Are there high-interest credit cards you could pay down more aggressively? Can you consolidate loans to simplify your payments and reduce your interest? 

Creating a clear plan to tackle your debts is like wiping the dust off a forgotten piece of furniture – it restores its value and makes it look new again. Don’t forget to look into your credit score and make sure that all the information there is accurate, including identifying opportunities to improve your credit health.

Step 3: Reassess your goals

Life is constantly changing, and so should your financial goals. The dreams you had five years ago might look different today. Are you still saving for the same big trip? Has your retirement timeline shifted? Perhaps you've started a new business or are planning to buy a home. Take a moment to write down your current goals and rank them by importance. 

This ensures you’re focusing on what matters today, not what felt urgent in the past. Clear goals act like a roadmap, guiding every financial decision you make. 

Ensure your financial plan is still aligned with the life you are currently living and the future you are building.

Step 4: Check your protection and investments

Think of this as checking for "leaks" in your financial foundation. Review your life insurance, short-term insurance and other protection policies. Are they still sufficient for your family's needs? Have you had any major life events that require an update? 

Next, take a look at your investments. Your portfolio may need to be rebalanced to ensure it still reflects your risk tolerance and long-term objectives. 

A quick review can prevent small issues from becoming larger problems down the road.

Step 5: Schedule a financial check-in

The most important step of all is knowing when to bring in a professional. While these four steps are a great starting point, a financial adviser can provide the expertise and guidance to ensure your plan is robust and optimised, identifying opportunities you may have missed, offering tailored advice for your unique situation, and providing the accountability needed to stay on track.

Just like a clean home brings a sense of calm and order, a clean and updated financial plan provides clarity and peace of mind.

Don't let financial drift happen to you. Contact your financial adviser to schedule a review today.

Ralene Grobler, Financial Adviser at Momentum Financial Planning

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