Frustrated with the pitiful amount of money left in your account each month? Struggling to make your income go much further than your regular outgoings and bills? To help get you inspired and out of that all too familiar financial rut, we’ve compiled a short list of steps to take, hopefully helping you to get better with money. Read on to find out more!
Come up with a financial plan
If you haven’t already, start by sitting down with your bank statements and financial info, and figuring out how much you spend each month on bills, outstanding debts and commitments. From there, you’ll know how much money you can afford to spend on small purchases here and there and social outings etc, allowing you to divvy up a budget, perhaps on a weekly basis. This will help you to stop yourself from blowing all your payday money on one night out, only to have to scrape through to payday a few weeks later.
Tip – If the amount of money you’re left over with seems too low, see if you can optimise some of your outgoing payments and bills, or nip them in the bud altogether. Often broadband and phone contracts can be negotiated and lowered if they’re due up for renewal, and many of us have subscriptions to services that we no longer use, which can be easily remedied to put a few extra pounds in your back pocket that you didn’t know you had.
Invest your money
Where possible, when you’ve started building up a little bit of money each month that you can afford to save, start thinking about building a financial profile, and investing what you can afford to in order to put your money back to work for you. Investment might seem like a daunting and risky challenge to get into if you’re inexperienced and don’t have a lot of time on your hands, but even if you have a few moments here and there, there are plenty of opportunities to learn even from your smartphone. From small investment apps that round up spending into a growing pot, to investment guides and podcasts from RWinvest that you can listen to and digest passively during your commute, there’s plenty to get involved with, so think creatively about how you can make the most productive use of your time when you have a free moment!
Think about a long-term goal
A great thing to keep in mind is where you want to be financially, whether that be in one years’ time, five years’ time, or even ten years’ time. Not only will this help you to become more motivated and focused in, with a clear goal in mind to strive towards, but it will also help to ensure that the decisions you make every day are all working together in synergy to reach that goal. Saving and getting a better grasp on your money generally is of course great, but you can sometimes lose focus and interest after a while when the money seems comfortable enough, so it’s great to set aspirations high.