Spring clean your financial habits

A change of season is as good an occasion as any to review your financial habits alongside the usual wardrobe and house clear-out — to see what you can swap out for better behaviours that serve your goals.

Keep: consider your financial goals

If you don’t have a financial plan in place, now is a good time to start one. If you do, review your short-, medium- and long-term goals to check they still align with your timelines and risk profile — particularly after any life changes. Whether you earn a little or a lot, the only way to save is to spend less than that amount, and building the habit of doing so consistently matters more than the exact figure.

Keep: review and manage your debt

Prioritise paying off your most expensive debt first. When you invest, time lets compounding work for you — given long enough, more of your investment’s value comes from growth than from your own contributions. Borrowing works the same way in reverse: the amount you owe earns interest over time, and compounding can make the true cost of credit substantially more than the amount you originally borrowed.

Keep: contribute to an emergency fund

A savings buffer gives you options in a crisis and means you don’t have to reach for credit or dip into long-term investments when something unexpected happens. There’s no single number that works for everyone, but a good rule of thumb is three to six months’ worth of expenses, built up through regular contributions over time.

Toss: impulsive buying

Discipline is what keeps a plan on track. Before an impulsive purchase that would throw your budget off, ask whether you truly need it — every withdrawal from savings is time lost from compounding.

Toss: emotional decision-making

Acting quickly on emotion can do lasting damage to a portfolio. Research your options upfront so your choices match your goals and objectives — understanding what you’re invested in, and trusting the manager behind it, makes it far easier to ignore the daily noise and the market’s ordinary ups and downs.

Toss: avoiding the money conversation

Frank conversations with loved ones about money are uncomfortable but important — whether that’s pressure to cover family expenses beyond your means, or simply making sure the people around you understand your plan, including practical matters like having a will in place.

This article is general information and not advice. Silke Financial Services is an Authorised Financial Services Provider, FSP No. 12462.