It can be quite hard to tell who is good with their finances and who isn’t. The type of signs that show someone is struggling with their money is if they talk about not being able to pay their phone bill or asking others to borrow money. These are signs of someone who is controlled by their money as opposed to them having control over their personal finances.
“From the loose change in your purse to the balance in your account, you should always know where you are putting your money.”
If you want to be a part of the savers & investors instead of the spenders & borrows, read these 5 tips below.
Make your bills a priority
Keeping track of your outgoings can be hard if you have different expenses going out on different days. It may be a good idea to set reminders in your calendar so you can check your balance in time before a direct debit takes place. It’s also worth calling the company and asking them if they can take out bills around the time you receive your salary so you only have to deal with your outgoings all in one go. Another option may be to use one account for your expenses and use another account for everyday spending.
Research and compare
When we see a product we like and we know we want to purchase the item, our first instinct is put our money down and pay for it. However, what we should be doing is shopping around for a cheaper option to save yourself from paying more than you need to. It’s worth searching the product on google and using the options on the shop tab to compare prices. When it comes to taking out insurance, loans or looking into savings accounts it’s always worth checking websites such as Compare The Market.
Create a standing order
The best way to save in an effortless way is to set up a standing order for your savings account. When you first get paid you may make many plans for your money and before you know it, saving is at the bottom of your priority list. If you want to live by the 50/30/20 rule then putting away 20% minimum towards your future may work best for you. Setting up regular withdrawals will help you get used to never using that money. When it comes to saving rates, be sure to research and compare to get the best rate on the market.
We make an effort to talk about everything from relationships to health with our friends, family and spouses so when it comes to personal finances we should do the same. Talk to someone you trust, especially if you start to feel like your money situation is no longer in your control. An example is using a credit card often and getting yourself into debt. The best way to tackle that situation is to speak up instead of dealing with it independently. Moreover, those you trust will never judge you for your situation but they are more than likely to help you get through it.
Know where you are putting your money
From the loose change in your purse to the balance in your account, you should always know where you are putting your money. Usually, we focus on the big amounts leaving our account but once you look through your expenses you may see the importance of the little things adding up. Examples are £10 Uber trips eventually coming up to £200 per month or a coffee run amounting to over £500 per year.
While a £5 note in your pocket may not seem like much, it’s worth allocating your money wisely so you know that you aren’t cutting into the cost of a bill or savings.
If you are used to having bad habits with your money, know that it’s not too late to change them for the better. A few changes to how you manage your money may be the difference between retirement in 10 years and retirement in 20 years.