7 ways to better manage your money
Guest Post by Debbie Fletcher
Some people always seem to have a good supply of money and are able to buy anything they want with a blanket of security, while others never seem to have enough and are constantly surprised by the state of their finances. However, with just a little work and a few behavior tweaks, you’ll soon find that small changes lead to big results. Here are seven ways to change your money for 2017.
#1 | Only spend what you can afford
Only spend what you can afford
It might seem obvious but a lot of people rely on overdrafts and other forms of credit to fund their lifestyles because they don’t have enough to make ends meet. Looking at your finances however and creating a budget based on your income and expenditure will help you make sure you only spend what you can afford. List all your bills and estimate how much you need for other expenses like childcare and petrol money, any money you have leftover is then yours to spend but at least you know all your bills will be paid.
#2 | Know when payments are made…
Check when all your bills are due and make sure you can afford to pay them on or before these dates. A host of monthly bill payments flying from your account at the end of the month and before you get your salary, is a recipe for disaster and late payment charges. If your bills are currently going out before your payday and you are incurring charges, consider changing your direct debit dates. Talk to your creditor and tell them when your pay dates are and seek a repayment plan that you are both happy with. Crediful is a great resource to help get you started.
#3 | Save for a rainy day
Work out how much you have left over after all your bills and expenses each month and start putting some money aside into a savings account, however small. Life throws unexpected expenses at us from time to time but having money set aside will prevent you having to take out credit.
#4 | Track spending
How often do you look at your account and see £100 in cash removed at an ATM, and have no idea what actually happened to that cash? Maybe you remember getting petrol or shopping or similar, but nothing more specific than that? Therefore, go cashless for a month (if you’re not doing that already) and see where you’re really spending money when it appears on your statement.
#5 | Price comparison sites
A very quick way of establishing the range of prices available for products such as utilities and insurance, and choosing the best that fit in with your lifestyle. They may not necessarily be the cheapest option – think of the additions such as legal help and breakdown cover with vehicle insurance – but you should still be able to save a penny or two.
#6 | Utilise vouchers and offers
Create a folder or calendar and keep these offers close to hand, noting when they expire and using them when you can. However, don’t be tempted to use vouchers for the sake of it; a BOGOF where you purchase two items of food that you’ll never eat is not a cost-saver.
#7| Have a plan – seek financial advice
Don’t stick your head in the sand and wait for your finances to consume you, even if all appears to be lost. There are a number of avenues you could follow from where you can get debt advice.
There are also many ways that you can obtain information on how to help alleviate your debts – your bank/creditor might be able to suggest solutions, as will Citizen’s Advice or a debt management company such as PayPlan. The advice will depend on your situation, so if you contact any of these come prepared with full details about your financial incomings and outgoings.
You may be eligible for a Debt Management Plan in place; this is an informal arrangement where you agree to pay off your debt through an arrangement between you and your creditors. Some debt management companies offer their services for free to create debt management plans, so it is certainly an option worth considering.
Other options include an Individual Voluntary Arrangement which is an agreement where you pay back what you can afford; bankruptcy, which gives you a clean start and writes off your debt; making an offer to settle some of your debts; or applying for an administration order.
A bit about Debbie
Debbie Fletcher is an enthusiastic, experienced writer who has written for a range of different magazines and news publications over the years. Graduating from City University London specialising in English Literature, Debbie’s passion for writing has since grown.
