Whether you’re looking to free up some extra cash or keep your financial goals on track, today’s episode is for you. I’ll walk you through three simple steps to detox your finances in just 15 minutes. Plus, I’ll share how we use these strategies year round for long-term financial success. So, if you’re ready to detox your finances without losing your mind, you’re in the right place. Let’s get started!
Links for This Episode
- Check out these DIY Resources and Templates
- Download your FREE Family Budget Worksheet
- Join the Financial Fix Up Membership
Podcast Episode Recommendations
- #23: How to Incorporate Separate Line Items for Spending
- #21: So You Failed in Your Monthly Budget, Now What?
- #13: 5 Savings Funds Every Family Budget Needs
Grab Your Financial Fix Up Planner Today
Here’s the deal: in order to achieve your long-term financial goals, you have to have a budget that works for you and your family. That means, getting super clear on your income, expenses, and total debt payoff amounts, so you can make any necessary changes and begin to see progress. That’s exactly what the Financial Fix Up Planner is designed to help you do. With step-by-step instructions to set up your budget, monthly challenges to keep you on your toes, menu planning resources, and space to reflect on your goals, you’ll have everything you need to pursue your dream of financial freedom. Sound like something you need? You can grab your copy today at lemonblessings.com/planner and take back control of your family finances. Once again that’s lemonblessings.com/planner for your copy of the Financial Fix Up Planner.
How to Detox Your Finances Without Losing Your Mind
Well hey there and welcome back to another episode of the Financial Fix Up Podcast. I’m your host, Sarah Brumley, and if you’re listening to this in real time then it’s the last week of September which means the holiday season in just around the corner. And with that, we know expenses are going to increase, and the budget is likely going to feel a little bit tighter. But don’t worry – this is the perfect time to get ahead of it with a little financial detox!
And this applies no matter what season of life you are in because I’m pretty sure we can always use a little help getting back on track and staying there. Am I right?
So today I’m just going to walk us through three simple steps to detox your finances in just 15 minutes – or maybe a little longer, depending on your situation. Sound like a plan? Well then, let’s just jump into it.
Step #1: Cancel Unused Subscriptions
The first thing to do is to cancel those unused subscriptions. Trust me, even if you think you’ve canceled everything you aren’t using, it’s likely there’s still at least one subscription you just don’t need. It could be a yearly subscription that hasn’t come back around just let or a streaming service that you were using but now that you’ve finished that show you were watching you haven’t reopened the app since. Even wellness and fitness memberships can often stick around much longer than you need them to. If you aren’t using it now, cancel it. You can always subscribe again if you need it in the future, but in the meantime, your bank account will thank you!
To do this step, all you have to do is pull up your bank statement and app store subscriptions, if you have them. Take five minutes and go line by line through each payment you’ve made over the last one to two months and identify any services you haven’t used in the last month. Then, because yearly subscriptions can sneak back up, I recommend also looking at your bank statements from 11 and 12 months ago just to make sure you aren’t about to be blindsided by something you don’t need.
Once you’ve identified those unused services, it really is as simple as either logging onto the app or service website and clicking the cancel button or maybe even making a quick phone call to make that cancellation. Remember it might take a few minutes of your time and it might feel a little awkward, but it’s worth it not to spend money for something you don’t need.
A family I know went through this exact process last month and managed to find three subscriptions totaling $52 per month. Because they don’t actually need the extra money right now, they decided to divert those funds to their vacation fund. Over this next year, they will have over $600 additional for their vacation. Super cool, right? Don’t we all want to have a little extra for the things that really matter to us?
And a bonus tip for you: I also suggest putting a reminder in your calendar to repeat this process every three months or so because we all know how easy it is to subscribe to a new subscription, use it for a month, and pay for it forever. So, that calendar reminder can be really helpful.
Step #2: Update Bill Payments
The second step to take is to update your bill payments. It might seem like a tedious task, but I think it’s important because missing or even late payments can lead to late fees or dips in your credit score, and those can affect everything from insurance rates to loan approvals to interest rates and more. We don’t want that. So, take another five minutes and look closely at your bill payment methods and ask yourself:
Are you paying each item manually every month or are your payments automated? I highly recommend automating essential payments like your mortgage, rent, utilities, and insurance so that you don’t risk defaulting on something that you actually need. In fact, a lot of providers will even give you a discount if you automate your payments, so that’s something to consider as well.
Once you’ve done that, ask yourself: Do you have bill payments that are scheduled around payday or are your risking an overdraft fee because that payment could come out right before you get paid? If you find that’s the case for you, take the time to adjust those scheduled payments as needed. Most service providers are willing to work with you, so make sure to ask.
Justin and I currently have all of our payments automated except for one. But because there’s no way to automate that payment, we have set up a reminder in our calendar to pay it each month. The fee is a hefty one if we miss it so that calendar reminder helps us stay on track and make the payment on time. You could also choose set up texts or email alerts for upcoming due dates if that works better for you.
Either way, it’s worth the time to update those bill payments.
Step #3: Review Savings Goals
The final step in this detox process is to review your savings goals. And the truth is that savings goals, whether that’s short-term or long-term, those goals can help you stay on track when it comes to achieving major milestones, including taking a vacation, sending a child to college or even simply having enough money set aside for an emergency. The problem is that those goals often get neglected in lieu of the every day expenses and experiences OR we forget to adapt those goals to our changing lives, whether that’s the addition of a new family member, a new job, or anything like that.
So, take a few minutes to review your savings goals and reset or change them as needed. You can ask yourself:
- Have there been any major life changes recently?
- Are my goals still realistic?
- Do I need to adjust the amount I’m saving?
- Am I prioritizing the right goals?
Make sure that the goals you set are directly related to your current situation and the future you dream of having. By doing so, you’ll be more likely to stick with them and actually achieve the results you want.
Time for Your 15-Minute Financial Detox
So, there you have it, your 15-minute financial detox. And it didn’t even take me 15 minutes to explain it – yay! My suggestion is to schedule a time in the next few days and just get it done. Walk through these steps one by one and make the changes necessary so that you can approach the last part of this year with complete confidence that your finances are working for you in the best way possible.
And, if you need help getting that budget up and going or want to rework the one you have, make sure to grab your copy of the Financial Fix Up Planner. It’s designed to help you create and achieve your financial goals. Get yours at lemonblessings.com/planner.
Whatever you decide, just know that I’m cheering you on! You’ve got this! Have an amazing day and I’ll chat with you again next time!
