Let’s face it. The last year hasn’t been our best financially. But we can’t afford to wallow, and now that life is gradually returning to normal, it is time to turn the tide and get some order restored.
This gives us all a great opportunity to review what went well and which mistakes we should urgently correct. There is lot’s you could do, but just start with the next right thing for YOU.
Tip #1 Start a Budget
To see what is going on clearly with your financial situation, commitments, and income, you will need to look through your budget carefully. There are several online software options that you can download and use, or you could create a spreadsheet. Some people still love pen and paper, so you could buy a paper planner instead!
Tip #2 Prioritise Expenses
Once you have your expenses listed, you need to try and reduce them. List them and give them each a priority rating. What could you ditch straight away? You can get rid of magazine subscriptions or season tickets to matches you never have time to attend. If you can cut back on eating out or always buying lunch, you can save money easily.
Tip #3 Organise Your Debt
If you have a lot of debt, but you’re managing, you could get in touch with banks offering consolidation loans. This will extend the time you will pay back the debt, but it should lower your monthly costs. Just watch the fees and look for the best deal you can. You could then free up money to start an emergency fund or pay for an insurance that you might need. Creating a debt report every month is a good idea because then you know exactly where you stand.
If you’re seriously struggling with debt, then make sure you gain lots of free advice first from good debt advisory services such as Step Change or the Money Advice Service before taking on more loans.
Tip #4 Make Plans to Improve Your Income
If you feel like it is impossible to cover all your essential expenses, you might need to come up with a creative plan.
You could take on more hours at work if this is an option for you, or work towards getting a promotion. Once social distancing measures have improved, you could rent out a room in your house if you are not using it. There are plenty of online methods of earning an income – just do some searches via google. Look through your attic to find items you can sell online. Start a blog or find another part time business you can make extra money from.
These are not quick fixes, but it will help you in the future if you carry them out consistently.
Times are tough on our finances, but it doesn’t have to be all doom and gloom. Use it as the leverage for taking action and turning the tide of your finances.
If you want to do more, come and join my free private Facebook group so you can get involved with the discussions about money and our personal finances.
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