Making the best use of your money
Sunday 5 June 2016
Beginner's guide to managing your money
Taking the time to manage your money better can really pay off. It can help you stay on top of your bills and save £1,000s each year. You can use these extra savings to pay off any debts you might have, put them towards your pension, or spend them on your next car or holiday. Read on for money management tips, including how to set up a budget, sticking to it and how to save.
The first step to taking control of your finances is doing a budget. It will take a little effort, but it’s a great way to get a quick snapshot of the money you have coming in and going out.
To get started on your budget, you’ll need to work out how much you spend on:
Get everyone in your family involved with keeping to a budget. Sit down together and make a plan that you can all stick to. Work out how much spending money is available and agree between you what you’ll each have.
For many of us, household bills make up a large chunk of our spending. The good news is that it’s easy to save hundreds of pounds off your bills by following our tips.
Life is unpredictable so try and review your budget and your spending if there’s a change, or at least every couple of months.
If you have loans or owe money on credit cards it usually makes sense to pay off the debt that charges the highest rate of interest first.
If you’ve already missed credit card or loan payments or if you’re behind with so-called ‘priority debts’ such as your rent or mortgage, energy bills, Council Tax, child support or court fines, take advice from a free debt advice charity straight away.
Some people find it hard to get motivated about saving, but it’s often much easier if you set a goal.
As your savings start to grow, you can:
Often, the hardest part of paying off your debts is taking the first step.
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