When you think of the current spring season, spring cleaning comes to mind. We don’t mean it in the sense of spring cleaning your house, although that wouldn’t hurt either! We are looking at the “spring cleaning” meaning in a financial sense. This will show you how financial spring cleaning can help you feel more focused and confident in your financial life and capacity as a property investor.
Spring cleaning, in the traditional sense, makes you think of whipping out the broom and duster. In financial terms, it’s a little different. Take a minute to pause, step back, and review the financial systems you already have in place. It’s time to get rid of waste, re-order your finances, and perhaps restructure your property portfolio.
Financial spring cleaning means paying off outdated accounts. Or possibly refinancing and renegotiating a home loan and associated repayments to take advantage of improved interest rates, and cancelling unused accounts. It also means making sure all your finances and property portfolio are working harmoniously. In this way, you de-clutter and bring in clarity, focus, organisation, and a better mindset for wealth-building going forward.
We’ll walk you through what spring-cleaned finances look like across eight key areas:
- A Clear Retirement Plan
- An Up-to-Date Will
- Up-to-Date Insurance
- Improving Your Credit Score
- Assessing Your Investment Portfolio for Potential Refinancing and Reinvesting
- Making Sure Your Property Tax Records Are Up-to-Date
- Automating Your Payments
- Re-Examining Your Wealth Mindset
1. A Clear Retirement Plan
Your retirement plan needs to be backed by a clear strategy with realistic goals, timelines and preparation included. IGrow Private Wealth has a team of Financial Planners who are well-equipped to assess your current retirement property investing plan. They will help you reconfigure things where necessary.
View our blog post that explains more about our retirement planning team and what they offer.
2. An Up-to-Date Will
Having a legal, compliant, up-to-date will is vital. Your assets, beneficiaries, and trust (if applicable) decisions should be recorded. Without this, your heirs’ inheritance will be compromised. As you carry out your financial spring cleaning, ensure that your will is covered in your estate or trust plan.
A spring-cleaned estate and trust plan that houses your property assets ensures your loved ones will be protected when you pass away. Your wishes will be seen to, so you can leave a legacy. Without a legally valid will, the court will decide who inherits what. Your assets can get tied up for years, which is less than ideal.
View our blog post that explains the importance of setting up a trust or company to safeguard your property assets.
Already have a will? Check that it is up-to-date! We have clients whose wills were drawn up decades ago, before they built an investment property portfolio or had children. Sometimes, the lawyer who drew it up has passed away or retired. This can also complicate matters if they were the only ones with an official copy.
3. Up-to-Date Insurance
Insurance creates a buffer against any unforeseen life events that can compromise your assets, where you will need to file a claim. Is your coverage amount for your long-term and short-term insurance up-to-date? Life cover, disability cover, income protection, home/contents, and liability should all be reviewed.
Have your life circumstances changed (with regards to salary changes, property purchases, or assets)? Do you need to update your list of beneficiaries for life insurance policies? Have you upgraded your laptop or have you had special portable medical equipment made for yourself (such as a hearing aid or pacemaker) that needs insurance coverage?
A spring-cleaned insurance policy means you won’t face surprises when life throws you a curveball.
IGrow Private Wealth, a company in partnership with the IGrow Group of Companies, will handle all your long-term insurance needs. IGrow Wealth Management will handle any short-term insurance needs you may have.
View our blog post about IGrow Private Wealth’s long-term insurance coverage offering.
Check out another blog post that explains the ins and outs of short-term insurance under IGrow Wealth Management to ensure you are covered in this regard.
4. Improving Your Credit Score
A good credit score is like having a squeaky-clean home after a thorough spring clean. It means you can borrow with better terms, access better interest rates on home loans, and seize refinancing and reinvesting opportunities.
As you carry out your financial spring cleaning, make sure you settle any debt, pay late or overdue expenses, and monitor your credit profile for errors. You may want to restructure your property portfolio, too.
Take a look at this post on how to improve your credit score. It is a practical, step-by-step guide worth checking out. A sound credit score enhances everything else regarding your financial life.
5. Assessing Your Investment Portfolio for Potential Refinancing and Reinvesting
A rewarding part of financial spring cleaning is re-examining your property investment portfolio. Your properties have likely appreciated in value over time. This presents the opportunity to unlock the equity in your property/ies so you can refinance and get better interest rates on your home loan. Then you can reinvest your equity into expanding your portfolio by purchasing additional properties.
Check out this post that explains property refinancing, reinvesting, and home equity potential in more depth.
6. Making Sure Your Property Tax Records Are Up-to-Date
While you do your financial spring cleaning, it’s essential to ensure your tax strategy in relation to your property portfolio is up-to-date. You will then be able to claim the proper deductions and optimise your tax returns. IGrow’s Tax and Accounting Advisory will be there to help you optimise your tax related to property investments at IGrow. This is overseen with their expert guidance.
Make sure to check out our post exploring specific tax-saving tips worth checking that you have incorporated into your tax returns.
7. Automating Your Payments
A wise part of spring cleaning your finances is to ensure your systems are running smoothly in terms of payments and expenses. Automating your accounts and home loan repayments and setting up debit orders if you don’t already have some in place is important. It helps you avoid overspending with money you don’t have.
In this way, you won’t miss payments or have defaulted payments negatively impacting your credit score and debt profile. This enforces a form of financial organisation and discipline that will add order and safety to your payment system. It will keep you on top of your finances and expenses overall.
View our post that delves into the financial habits of highly successful investors, which mentions automating savings and setting up debit orders for financial well-being.
8. Re-Examining Your Wealth Mindset
Lastly, spring cleaning and its meaning go beyond mere numbers; it is also about considering your wealth mindset. A wealth-centred mindset helps you retain focus, discipline, and motivation as you expand your property portfolio.
Take a minute to reflect on what your financial goals and wealth creation goals are. Do they need re-aligning or fine-tuning? Financial spring cleaning is about emotional well-being coupled with financial well-being, because they are interconnected and support one another.
For some inner well-being and financial well-being improvement tips and inspiration, check out our blog post on how to become a successful property investor.
Conclusion
Spring has sprung, and a financial spring clean is definitely in order and worthwhile. A shift in mindset to remain focused, proactive, and instil mental and financial discipline sets you on a path to wealth creation and financial growth. With your retirement plans in place, your legal and insurance coverage in check, your credit and investment bases covered, and your payments automated, you’re on the right path. Having your emotional and financial mindset optimised too, means property investment success is yours for the taking!
If you are ready to get into financial spring cleaning, the IGrow team is here to assist you and guide you on your property investment journey. Whether you are looking at refining your retirement strategy, getting adequate insurance coverage, refinancing and reinvesting, our team will happily offer assistance. Or if you’re aiming at expanding your property portfolio in the long term, we’ve got you covered.
We’ve shared some of our top posts related to eight key areas we believe will leave you financially free and ensure property investment success for our investors. Let this season of renewal be about financial success and fresh beginnings.
Contact an IGrow property investment specialist today, and let’s begin your property investment journey. Or if you have already embarked upon the journey, let’s refine and spring clean your strategy. Then you can reach maximum ROI for your property portfolio.
