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5 ways to spring clean your finances

It'll soon be spring cleaning time but it doesn't only have to be cobwebs and pest treatments. It's also a great excuse to do a financial stocktake, tidy up and throw out. Here are five simple things you can do to warm up your personal financial performance:

1. GST your life.
If you pay it for goods and services, why not automatically transfer 10% of your weekly pay to a high interest account, or invest it. Just don't spend it. You can get as much as 6.51% interest on bank accounts, yet most people settle for 4% or even less.

2. Get savvy when asking about fees.
Get savvy when asking about fees that come with bank accounts, mobile phones and credit cards. These costs add up, but you can always improve on last year.

3. Don't be lazy with credit cards.
Some card providers charge as much as 20%, while others charge 11-12%. It's never too late to change. And while you're at it, check the annual fees on the card. With annual fees ranging from $35 through to $100, it's worth doing your homework.

4. Ask questions.
Don't pretend you know all the answers; you should ask and ask and ask until you feel confident as both a consumer and investor.

5. Draw up a budget and write down your goals.
Be clear about what you want to achieve, and most importantly, the savings that you can make.

Source: Your Money Magazine. September 2011, page 5. 5 ways to spring clean your finances. Reproduced with permission.