Welcome to this week's
Finance Fridays. Last week we were looking at staying safe on eBay. This week I've sharing some tips on how to get your
finances in good order. With all of having such busy lives it can be
easy for us to take our eyes off things. So take a moment to see if
there are some areas where your finances could do with a little work.
1. In and out – Sit down and
make a list of everything that you earn each month and any other
income you receive. Then write down what you need to spend –
mortgage/rent, gas, electric, water, council tax, phone and
broadband, car and travel costs, and any insurance. Work out what is
left and see exactly what you are spending the rest of your money on.
2. Bank online – This makes
it easy to keep track of what is going in and out of your account on
a daily basis. Are there payments you don't recognise? Do you still
pay for direct debits for subscriptions you no longer use?
3. Check interest rates –
This applies to both savings and borrowing rates. Instant access
savings rates have been extremely low for some time but if you can
look into fixed term accounts. If you are paying the Standard
Variable Rate (SVR) for your mortgage talk to your lender about
moving to a lower rate. Also check the interest rate on other loans
you have such as credit cards.
4. Build up reserves – As a
former financial adviser I would say everybody should try and have an
emergency fund of at least 3 months of income. If possible try to get
it up to 6 months' worth. If you lose your job suddenly then at least
you have some breathing room and ability to pay for the essentials in
the short term.
5. Review your credit report –
You can do this for free with companies such Experian and Equifax. Do
make sure you cancel before the trial period is up. If there are any
financial transactions you don't know about get in touch with the
companies and find out what they are about.
6. Review life assurance
policies – Many people take out life assurance when they buy a
house or when their first child was born. If your circumstances have
changed since then check to see if your cover is enough.
Alternatively if the kids have left home or you have downsized your
house you could trim cut the cost of your monthly payment.
7. Pay off debts – Easier
said than done but ignoring them will make them worse. See if you can
switch any to a lower rate or even 0%. Work you which debt is
accumulating the highest amount of interest and start to work on
paying that one off first.
8. Keep within your means –
Many people get into financial difficulties by trying to keep up with
the lifestyles of others. If you can't afford the expensive holidays,
clothes, cars and hobbies of friends and acquaintances then don't try
to compete. Spending money you don't have in the short term may bring
you temporary happiness but in the long term it will bring you debt.
9. Sell what you don't need or
use – Decluttering your house has become very fashionable but don't
just leave it at the things you can see around you. Go through
cupboards, lofts and garages to see what is unwanted and saleable.
10. Get rewarded for what you do
buy – We can't go without spending money but what you do buy try
and get money back from it. Search online for discount codes and use
cashback sites such as Quidco or Top Cashback.
Do you regularly review your
finances? Have you saved money but using any of the tips above?
If
you want to join in with this week's Finance Fridays then add your
link to the linky below. Any post concerning financial matters is
allowed. Full details here. It doesn't have to be published today as
you have until 23.55 on Tuesday 7th June 2016 to join in.
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Great tips! I have found things much easier to manage since the invent of online banking. Not sure how we ever managed without it!
ReplyDeleteso useful to remind yourself of managing your money as it can easily get lost in busyness
ReplyDeleteThose are such brilliant tips. I'm checking them all at the moment to make sure I do all of them!
ReplyDeleteThere are some great tips there. I think we all need to be reminded to live within our means
ReplyDeleteReviewing your credit report periodically is an excellent idea just to keep tabs on what it says and nip any errors in the bud. Great tips.
ReplyDeleteI find banking online a godsend. Really must check my credit report though
ReplyDelete