The New Year will see many people making goals and resolutions of the financial kind. There will always be different motivations. It could be to buy a house, pay for a wedding, start a family. It could be to just feel more secure and financially stable. Whatever the motivation may be, this year could be your year to become more financially savvy. But where do you start? Here are some suggestions to help you on you way.
Taking control of debts
One of the first things you may want to think about doing is taking control of your debts. It might be that you have spent a little more than you wanted over the festive period. Or you simply have had debts, and now want to focus on paying them off for good. First of all, look at what you have. Balance transferring to a zero or low interest card means more money being cleared off the balance and not the interest charges. You could look at loans, giving you a payment plan and one payment to pay them off. Seeking advice and checking your credit score would be a good place to start. If there are no options, focus on the one that is costing you the most first and pay more off it as and when you can. Before you know it, those debts will reduce because it has become a focus for you.
Making savings to your monthly outgoings
There will always be ways that you can make savings when it comes to your monthly outgoings, you just need to be proactive. The big saving to be made could be when it comes to your food bill. Meal planning and list writing can make all of the difference here. Switching from branded items to supermarket alternatives can also offer big savings. Your bills could also hold some savings for you. Switching providers for things like energy or insurance policies could give you a monthly saving.
Looking at ways to make some savings
Saving money could be your focus this year, and once you have some extra disposable income thanks to making changes with your bills, it might be time to start thinking about putting it somewhere. Saving little and often can be a great way to save, as you don’t necessarily notice the small amounts. There are some great savings challenges online. You could also set up a regular direct debit for the amount you have saved, and have it transferred into a new account. You won’t miss what you didn’t have before, if that makes sense.
Having a budget and sticking with it
Finally, having a budget can often be a great way to ensure that you remind on this path of financial freedom. Be specific with things such as food, and also take into account travel expenses, fuel for your car, days out with the family, etc. Budgeting means that you are fully aware of the outgoings and your commitments for that month, and are less likely to be frivolous.
Let’s hope these ideas help you on your way to becoming financially savvy this year.
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