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The increasingly popular concept of ‘Swedish death cleaning’, a practice that encourages individuals to clean out their homes to ease the burden on loved ones after their demise, is now being applied to personal finance.
Autumn often inspires a desire to ‘reset’ Cara Gammell, a personal finance expert at MoneySupermarket, suggests extending this decluttering philosophy to our financial affairs, not just our material belongings.
“Most people don’t like to think about these things because it sounds really morbid, but I think the concept is quite useful,” Gammell says. “It’s about lining up to make things easier for the people you care about, and I think any trend that helps people organize their finances is beneficial. Most people don’t really realize how much financial clutter they’re leaving behind.”
She adds that it’s especially important to organize your finances if you have children, a partner, or someone who is financially dependent on you.
“It would be very difficult for them if something happened to you, the last thing they want to do is figure out all the paperwork,” says Gammell.
Personal finance experts highlight that doing a monthly or annual financial checkup of your finances can help you gain a better sense of “control and clarity…freeing up space to make better financial decisions to save money.”
If financial management seems like an overwhelming task, here are some tips to help you get started…
Set aside 15 minutes for financial administration
,People Get overwhelmed, especially when you call it death cleaning,” admits Gammell. ”It can be hard to get started, so I have something I call the 15-minute rule where I tell myself, anyone can do something in 15 minutes. I think once you start pushing that ball down the hill, you start to get momentum and you start ticking things off your list.
Close old or unused bank accounts
“Closing unused accounts simplifies your financial footprint and makes it easier for loved ones to handle your assets,” says Gammell. “Many people have accounts from old jobs, student days or previous banks that are still technically open.”
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Check Your Credit Report
“But MoneySupermarketWe have a tool that allows you to check your credit report for free,” Gammell says. ”Here you can see if you’re still connected to people from your past, such as former partners or flatmates, and then you can remove that financial connection. This is very useful and can really make a huge difference. “One credit report shows you everything in one place and means you don’t have to look for everything or try to find millions of logins and passwords.”
Check your subscriptions regularly
“One thing I do sometimes is say oh, it’s Membership Sunday and check my banking app for any outgoing membership payments,” Gammell says. “Not canceling subscriptions in a timely manner is where many of us get stuck, including myself. I’ve used apps like Emma in the past which are really great and they can really help keep your spending in perspective.”
Appoint a digital executor
“Think of a digital executor as your online organizer-in-chief,” says Gammell. “Someone you trust to take care of your digital life – like photos, social media, email accounts, cloud storage and all those streaming subscriptions – if you’re not around.
“To appoint a digital executor, simply name them in your will and clearly outline what you want them to manage – whether it’s closing social media accounts, saving precious photos, or organizing your online banking. It’s a good idea to leave a list of your digital assets and instructions somewhere safe, but accessible, and make sure you check that your chosen person is comfortable with the responsibility.”
Make sure your will is up to date
“Many people don’t have a will and it’s actually quite shocking,” says Gammell. “So, make sure you have an up-to-date copy of your will and someone knows where it is.” “A will tells you what happens to your money, what happens to your family, and it makes sure that you, rather than the government or anyone else, are able to decide what happens.”
Compile all your key documents
“Keep all your important paperwork – bank statements, insurance policies, wills – in a safe place and tell someone where they all are,” recommends Gammell. “Even better, scan them and save in a password-protected folder. This will save your loved ones a world of stress if they ever need to find something fast.”