For some of us, feeling financially stable is a long way away. It can often feel like you are in a never-ending cycle of living paycheque to paycheque. However, life does not have to be that way, and we all can achieve financial stability if we put our minds to it.
Although it is not easy, it is certainly not impossible. This helpful guide has been put together to help you achieve financial happiness in 2022, so you can enjoy life and live without the stress of money woes.
Plan, Plan, Plan!
Are you someone who is in the habit of spending money without checking your bank account? You may think the odd pound here and there won’t do much damage, but it can certainly start to add up over time. It’s time to put that bank card away in exchange for a budget plan. It can be a good idea to sit down at the start of every month and plan out your budget. You can find plenty of free budget planners online to help get you started.
Start by writing down your income alongside your bills, rent, and other essentials like a food shop. This will then show you how much money you have left each month. This will stop you from overspending on items you do not deem essential. For example, do you need that daily coffee from your local café? Or could you swap it for one at home?
Shop The Sales
There are some expenses in life that we cannot avoid. However, if you start to think smart about shopping, you could save yourself a lot of money over the course of the year. For example, if you know you have a birthday coming up, shop the new year sales to find a lovely gift. The recipient will never know it was in the sale, and you’ve also saved yourself a lot of money in the process by grabbing a total bargain.
As well as shopping the sales, you can also look for discount codes to use online. For example, if you need to purchase a new pair of shoes, enter the store’s name into Google followed by discount codes. You may be surprised at just how much money you can save. Sure, you may not always be successful in finding a discount code, but it is well worth a try.
Open a Savings Account
It’s time to start thinking about your future. Savings accounts are an excellent way for you to achieve this. Once you have your budget planner in place, you can identify how much money you have leftover each month. You can then transfer some of this over to your savings account each month to keep it safe.
Moving it to a different account will deter you from using it, and it also helps you save for those months where you need some extra funds. For example, your car may be due a service and MOT. If you have managed to put some money in your savings, you can use this, taking away some of the financial burden. You can find some of the best savings accounts through a quick Google search. It is advised that you choose one with the highest interest rate so you can get more for your money in the long run.
Prioritise Paying Off Your Debts
When faced with debt, it can feel like a stressful time. Often, you may feel like there is no way out. However, it is important to remember there is. With the right mindset and organisation, you can face your debts head-on and pay them off. If you have multiple debts, you should start by placing them in order of priority. The ones that need paying off first should be at the top of your list.
It can often help to seek out a loan to help you pay off your debts quickly so you can avoid those pesky rising interest rates. Payday UK are a finance company that can certainly help with that. Their team of expert brokers can help you find a loan that suits your needs. So, you can work on paying off those debts quickly so you can get your finances in order. This is a process that takes a lot of organising. However, once your list of debts starts to minimise, you will undoubtedly feel a huge sense of relief.
Identify Your Spending Triggers
Identifying your spending triggers can be challenging if this is something you have not done before. However, if you notice periods in your life where you seem to be spending more than you can afford, start to ask yourself why. For example, if you are stressed, do you tend to shop more to take your mind off it? Once you can identify your spending triggers, you can start putting work into avoiding them. For example, if you do spend a lot of money during times of stress, try to look at other destressing activities that you can try. There is plenty of inspiration online for you to take a look at. Once you can identify these triggers, you can better stick to your budget and avoid getting yourself into a difficult financial situation.
Pay Bills As Soon As Possible
Some of us can fall into the habit of pushing our bills to one side. However, it is important to remember that they will not go away, and the longer you leave them, the more financial strain they will put on you. Therefore, you must get into the habit of paying off bills as soon as they come in. Granted, this can be easier said than done, but if there is a bill that you are struggling with, try to identify ways that you can reduce the costs. For example, if your phone contract is too high and you find yourself struggling each month, try looking into a SIM-only plan instead. They are renowned for being much cheaper, and you can find a deal that better fits within your budget.
When it comes to reducing the cost of your bills, it can also help to use price comparison sites. You never have to settle with the provider that you have. Use these sites to your advantage if you feel like you are overpaying for your broadband, gas, electric, or even car insurance. You may be able to slice the cost of your monthly bills in half.
Use Cash Instead of Card
Having a credit card can make spending a lot easier. We can easily tap our card in shops, and before we know it, we’ve ended up spending more than we could initially afford. Therefore, it can help to get into the habit of using cash instead of your card. Once you have worked out your monthly budget, withdraw some of your leftover money and use this until your next paycheque. Seeing your cash physically gives you a clear idea of what you have left each month. The downside of a card is we can keep spending money without being aware of the damage we are causing to our budget. It’s time to put down that card and replace it for cash.
