Keeping on top of our money situation is something all of us need to be good at, no matter how much you earn. Whether you feel like you don’t earn enough to make effective savings and can only afford to pay off your rent and buy essentials, or that you earn enough to not need to worry about watching what you spend, you’ll find that spending some time identifying exactly what you’re spending and what things you can cut out can actually save you a significant amount of money. Here are our best tips for managing your finances quickly and easily.
Analyse Your Financial Situation
It’s not uncommon to experience anxiety and fear when taking a look at your bank account. It can be tempting to bury your head in the sand and ignore the topic altogether but that’s just not going to help you in the long run, as you’ll likely understand. Now, it’s time to take stock of what you have coming in, and what is going out of all of your bank accounts, as well as any savings you may have. Once you’ve got a good idea of this, you might even find that your situation isn’t as bad as you’d feared.
Budget Plans And Spreadsheets
Enter all of your financial transactions into a budget spreadsheet and calculate everything you’ll have left once all of your essential payments have been made, including rent or mortgage repayments, food and bills. Ideally, you should see a positive figure left over after this, which can then be allocated into your discretionary or savings pots. The more detail you can put into these plans and spreadsheets the better, and this can entirely offset any money worries you have by helping you to easily identify exactly what money you have for specific purchases, as well as helping you to figure out what you can cut down on.
Choose A Good Bank Account
You choice of bank account is an essential decision, especially today. While you may be tempted to stick with one of the big high street banks, there are actually plenty of other options out there that can provide you with great services and access to your money. Online banks like Starling and Monzo provide users with pots or spaces in which you can segment your finances to avoid overspending and leaving yourself short for other important payments. For example, once you get paid, you can put your essential bills and rent money away into a specific space, so that you know, no matter what, you’ll have that money ready when it’s due.
Handling Your Debts And Repayments
Most people have some form of debt repayments to make, whether it’s a student loan or mortgage, and it’s important to know that it’s not inherently bad to have debts to pay. It’s all about how you handle those payments and keep on top of them to avoid missing any. Take your debts seriously and ensure that these are paid as a priority to avoid getting into trouble. Sometimes, there are things that you need to pay for urgently that you just can’t afford until you get paid. In that case, there are options out there, but you should be very careful with what you choose. Pay day loans, like those available from accredited brokers such as Pay Day UK, can be a great way of dealing with a payment quickly and easily. But remember, the incredibly high interest on these loans means that you should aim to pay them off as soon as you have the money to avoid having to pay an unnecessary amount back in interest.
Consistently Check Your Finances
The cost of living can be surprisingly expensive these days, and even with all of the best planning in the world, you can find yourself being left short after something as small as an impromptu coffee catch up with a friend or a night out to celebrate a birthday. It’s important to take a look at your account everyday to make sure you’re still on track and that all of your finances are still in order. These consistent checks also reduce your chances of leaving any issues for too long, such as charging errors, subscriptions you’ve forgotten to cancel, or even malicious activity such as fraud. Your money is your responsibility so keep an eye on it.
Cut Down On Unnecessary Purchases
It’s very easy to start spending as soon as you get paid, and in fact, Brits spend nearly half of their disposable income within the first day of being paid! It can be so tempting to make those purchases you’ve been putting off the previous month, and while it’s important to treat yourself once in a while, try to keep level-headed and follow your financial planning to avoid overspending and getting yourself into a bind for the next month. Instead, try to spread out these treat and luxury purchases across the month, or even cut some out entirely, saving them for the next payday instead.