If you are worried about wasting money each month or have noticed an increase in your spending it may be time to look at how you manage your personal finances. There are some common areas where spending can be cut to ensure there's more room in your household budget for essential things such as rent and mortgage payments. This will also mean that you have the ability to save for your future and increase your financial security.
Splurges and Treats
That morning latte or magazine may feel well-deserved, but is it costing you more than you think? Small treats and one-off splurges on expensive items such as a new TV or laptop can add up over the course of a month or year and impede your ability to meet other more important financial goals. Look for cheaper alternatives to regular treats such as taking your own coffee to work in a travel mug and save what you would have spent. You may be surprised to see how quickly the savings mount up and your feelings toward those 'treats' may change for good. When thinking about buying a big-ticket item, take some time to decide if you really want it and if you can really afford it. Then shop around for a good price or consider waiting until it goes on sale.
Having lots of high-interest debt is costly and can really restrict your life. Try to prioritise paying off your debt to reduce your monthly commitments and the amount of interest you will pay when compared to making minimum payments. Use any leftover money at the end of each month to make overpayments on your debt and start with the debt that has the highest interest first. If you are struggling to meet your debt repayments or can only afford the minimum monthly payment it may be useful to speak with a debt adviser such as an IVA expert who can help you create a plan of action for getting out of debt and back on the path to financial health.
Do you have the best current account for your needs? Most bank accounts now come with arranged-overdraft fees and other penalties, but charges do vary. Take some time to compare different account options and consider switching to a bank with more favourable charges if you use your overdraft a lot. Additionally, if you are paying a monthly fee for premium account services such as free travel insurance then consider whether you use the services you are paying for. If not, cancel your premium account and revert back to a standard free current account.
Getting the Best Deal
Start shopping around and using comparison websites for expenses such as insurance, gas, electricity, phone and broadband. Many people stay with the same supplier for several years because they think switching will be a hassle, but searching out the best deals could potentially save you thousands each year. The switching process is usually very simple as your new provider will typically manage the changeover.
If you would like more information on debt, managing money and how to get out of debt you can find out more by visiting this website