How to take control of your finances
No matter what your situation and personal circumstances, finances are important to everyone. It doesn’t matter if you have lots of money, or just a little – being in control of your finances is vital!
If you are someone who tends to turn a blind eye to the numbers, being in control of your finances can be tricky. Problems or no problems, being in control involves facing your bank account head on and being aware of incomings and outgoings.
Here are a few top tips for taking control of your finances and ultimately, improving your financial wellbeing.
Budget, budget, budget
The big B word – budget. The best way to have a clear understanding and visibility over your finances is to budget. This means that you are aware of how much money you have to spend each day, week or month and where this money should be going.
To begin your budget, write down your income for the month or week and all your essential expenses and direct debits, such as bills, petrol and food. Subtract the expenses from your income to determine your disposable income.
To be extra organised, take a look at any plans you have in the diary for the upcoming week or month and assign a mini budget from your disposable income. For example, if you have a wedding to attend, decide how much spending money you are giving yourself for this event and stick to it.
If you have any disposable income leftover once assigning your mini budgets, try and save it!
Carry cash
Another good way to be disciplined and controlled with your money is to take an ‘allowance’ out in cash. If you know how much money you have to spend within the week after creating your budget, carry the cash in your purse or wallet and use this as a tangible way to track how much you have each day.
Resisting the urge to keep tapping your card to pay for things and sticking to a cash budget means that you will avoid frivolous spending here and there. £5 here and £5 there soon adds up without you really realising.
Pay off debt
Ok, this is easier said than done. However, ignoring debt will only make you feel more out of control of your finances. If you do have debt, try your best to pay this off in manageable chunks each month. You may have to make a few spending sacrifices but seeing that overall balance decrease bit by bit will give you a positive buzz. Remember, it’s only temporary and so worth the time and effort trying to tackle.
If you need advice on debt, there are so many organisations out there that can help you so please do not hesitate to get in touch! You can find a helpful list here.
Understand your mortgage
If you have a mortgage, it’s time to really take control and understand the ins and outs of how your mortgage works. The mortgage market is confusing, and that’s why a large proportion of people will often turn to a mortgage advisor and broker.
Whilst using a mortgage advisor and broker is the best way to secure the right mortgage product for your circumstances, it can be easy to fall into the trap of letting an advisor do all the work and for you to simply sign the forms and pay the balance each month. But do you really know why you have the product you have and whether it’s the best option out there for you and your financial future?
Next time you remortgage or move house, find a mortgage advisor and broker who works closely with you to empower you with the knowledge you need to understand the mortgage jargon, the application process and how the mortgage product that you secure works.
Take control of your monthly bills
Are you one of those people who lets your slightly increased car or pet insurance policy tick over and over each year because you don’t want the hassle of trying to get a cheaper price? It’s time to kick that habit and take control of your monthly bills! Simply by spending a bit of time looking into different providers for utility bills and/or insurance providers, you could save more than you think.
And it’s not just about getting cheaper policies or providers, it’s about getting the best out of your money. You could be overpaying for an insurance policy that perhaps doesn’t really meet your needs anymore. There might be an opportunity to upgrade your TV or internet subscription with some spare pennies you have each month that could add some entertainment value to your evenings.
Taking control of your finances allows you to only spend on what is necessary, but also gives you visibility over your disposable pennies so that you can treat yourself guilt-free in the knowledge that you aren’t overspending. Financial wellbeing is important, so make it a priority!
