In life, we can all go through times of financial hardship. The important thing to remember in these situations is there is a way out. 2022 is the year to better your financial situation. It is time to start thinking smart about how we spend and save our money each month.
This article is here to help. Take a look at our six top tips below to help you get started.
Use Budgeting Apps
If you are serious about saving, budgeting needs to become your new best friend. Learning how to budget your money is essential if you want to save money and avoid getting yourself into a difficult financial situation. Now that technology has evolved, there are plenty of budgetingapps that you can take advantage of. Just conduct a quick online search to find them. Typically, you will use these apps to track your spending. You will enter your monthly income and expenditure, and this will give you a clear idea of how much you have leftover each month.
Setting yourself a monthly budget will stop you from overspending. It will encourage you to think before you make a purchase. For example, do you need that new t-shirt you saw in the shop the other day? Knowing you are working towards a tight budget will help you make smarter decisions when out and about.
Pay Off Your Debts
Debt can feel very scary. However, pushing your debts to one side will not make them go away. It’s time to face these challenges head-on by paying them off. For some, this can be easier said than done. After all, you are most likely in debt because you couldn’t afford what you needed in the first place. However, there is a way out.
Start by laying out your debts in front of you and placing them in order of priority. If one has an exceptionallyhigh-interest rate, you will want to pay this off first to avoid additional fees. Once you start placing your debts in order of priority, you can motivate yourself to pay them off. It can be a long process, but once it is over, you are sure to feel like a weight has been lifted.
Earn Cash from Home
For most of us, there will always be those months where money is tight. Instead of letting this get you down, try thinking of alternative ways to make money. For example, you can start selling your unwanted items on sites like eBay. There are even plenty of ways to make cash from the comfort of your own home. Take a look at referral schemes. Ask the providers of your bills if they offer a referral scheme. The idea is you will refer a friend to use the same provider, and if they sign up, you can earn a cash reward.
Not all providers will advertise this scheme, so it is always worth asking. Take a look at Lebara as an example. This popular mobile phone network provider offers their customers £50 per referral. Making money from home has never been easier. For more money-making inspiration, it is recommended that you use the internet to find out what you can do.
Open A Savings Account
When thinking about your financial situation, you should always have your future in mind. Sure, you may be living comfortably now, but what if something happens in a few years that requires a lot of money upfront. This can be anything from needing a new car to fixing a burst pipe in your home. When problems like these arise, if you are not prepared, you can end up in a difficult financial situation. This is where savings accounts can help.
You should consider opening a savings account, even if you can only afford to put a small amount of money in there each month. This helps you prepare for the future, and it can also give you peace of mind that you have some financial security if you need it. When choosing a savings account, try to pick one that has a high-interest rate as it will help you maximise your returns. You can compare some of the best UK savings accounts online to help you find the right one.
Use Price Comparison Websites
Are you paying too much for your monthly bills? It’s time to investigate this. Many people settle for the providers they have for essentials like their gas, phone, electricity and insurance. However, they could be getting a better deal elsewhere if theytake the time to shop around. Pricecomparisonsites are a free tool that you can use to help with this. You can compare hundreds of different providers against one another to find the best deal. You should never get into the habit of settling with the providers you already have. By doing so, you could be paying a lot more for your monthly bills than you need to be.
Use Cash Instead of Card
Do you want to know a simpleyet effective, money-saving tactic? Start swapping your credit card in exchange for cash. Now, especially with contactless payments, spending money on your cards is easier than ever. However, we can often overspend because we cannot physically see how much money we have left. You may think you are only spending the odd pound here and there, but it will certainly start to add up.
If you are sticking to a tight budget, as previously discussed, you should have a clear idea of how much money you have leftover each month. Start getting into the habit of withdrawing this money. You can then physically see how much cash you have for that month. It can help you to think smarter about your purchases. There is only one downside to this tip. If you are clumsy and often misplace things, you could end up losing your cash for the month. Instead, you should always make sure the money is in a secure place like a purse or money box.