5 Great Ways Of Improving Your Finances | Pip Milburn

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Money worries are something that affect so many people. In fact, at some point or other, pretty much everyone will suffer stress caused by their financial situation. But if you find that you are perpetually losing sleep because of money, then getting better control of your finances is important. 

A lot of worries and stress surrounding money comes from trying to ignore it. We often don’t want to think about our financial situation, yet when we turn a blind eye to our expenditure, then things can often end up getting much worse. 

To be able to manage your finances fully, you need to have a clear understanding of your expenses. To obtain this understanding, you need to fully embrace your financial situation and start paying attention to every small detail. 

Watching The Pennies

It is certainly true that you need to watch the small numbers in your personal expenses, as these will really mount up. It may just be a small purchase here or a little extra spent on that, but pretty soon, you’ll be out of pocket and racking up debt.

With this in mind, paying attention to every transaction and outgoing is vital, not just concerning yourself with the big bills. 

Managing Your Debts

Having debts needn’t be a bad thing. Sometimes buying an item using a credit card is the most sensible option because if anything goes wrong with the transaction, your credit card company will cover it. Similarly, when buying bigger items such as cars or home appliances it often makes sense to do this using a loan. 

The problems with debts start to emerge when you do not manage them. If credit cards are not repaid straight away, and if payments are missed on loans, then you’ll end up paying over the odds and you may also find that your credit rating suffers as a result. 

Maintaining a good credit rating is important in the long term, especially if you plan on ever taking out a mortgage. So repaying debts in a timely way is in your best interests. 

If you are in a spiral of debt, consolidating all of your loans, credit cards, and overdrafts may be the way to solve your problems. By taking out one loan to repay all of your existing debt, you’ll only need to think about making one payment each month. You’ll get an end date that your debt will be completely paid off by too. 

If your credit score is low, you may want to Compare guarantor loans. This type of loan will mean that you will need to find someone with a good credit score who trusts you to act as your guarantor so that you can borrow money. 

Switching Your Providers

One of the problems that many people have when it comes to money is that they are paying too much for their goods and services. When you take out a service such as your phone or home internet, or you take an insurance policy out, you will get a great introductory rate. Companies often reel in newer customers with fantastic offers. Once you are out of their initial contract period, they are no longer obliged to charge you this amount, and they will slide the price back up. If you pay by direct debit, you may not even notice this happening.  

Look at all of the companies that you use for any services and find out how much you are paying, and what you get for that money. Then, start to shop around. Comparison sites are a great place to start your search. You may be surprised at how much cheaper you can get things by just switching providers. 

Make sure you pay attention in the future, and always look at switching around insurance and contract renewal dates. 

Eat Smart

Food is an important outgoing. But if you are someone who buys branded food items, easts takeaways quite often or gets sucked into special end of aisle offers in the supermarket, then you’re probably spending much more on food than you need to be. 

A much more effective solution is to create a meal plan for the week ahead. Use recipes where you can, and make meals from scratch. This can be a much more cost-effective way of eating. Then, once you have made a meal plan, only buy the ingredients that you need when you go to the shops. Don’t buy anything that is not on your shopping list, even if it is a great offer.

If you can batch cook any meals, this is a great way of saving both money and time. By making lots of certain means, you can fill your freezer with great meals that you can reheat when you need them. 

Takeaways make for a great treat. But if you are having them on a weekly, or even daily basis, then you are not eating smart. 

Living By Your Budget

Setting a budget for everything in life is the only way that you can fully ensure that you keep as much control on your finances as possible. Of course, there may be large and sometimes unexpected expenses that appear in life and can cause us a great deal of stress and worry, but if you maintain a tight grip on your personal budget, then you will be much more able to solve financial problems as they arise.

Set yourself up an income and expenditure spreadsheet and keep it updated. By looking at home much money you have coming in, and comparing it to your outgoings on the screen will mean that you will be able to see where you are overspending much easier.

You should always be looking at ways that you could reduce your expenditure. Ask yourself if something that you have paid out for is essential, and if it is not, then look at ways of cutting this expense out. You may notice that you are not getting the full value from a service that you are paying for, and by cutting them out, you can save yourself a considerable sum. 

*This is a collaboration post.

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