It can be difficult to know how to manage your finances well. Here are some tips:
1 . Budget your expenses
A budget is one of the most effective ways to gain control over your finances. You can see exactly where your money goes, and you will be able to save for things you desire, plan for emergencies, and prepare for the future.
A budget is simply a list that shows all of the money coming in and going out. A budget can be made for any time period you choose, such as weekly, monthly, or annually. For help from Stroud Accountants, visit www.randall-payne.co.uk/services/accountancy/stroud-accountants/
- Put some money aside as soon as you can
Saving money can be difficult with the rising cost of living. Your ability to do so will depend on how much you earn. It’s still a good idea, however, to set aside money for any unexpected expenses that may arise. An emergency fund, no matter how big or small, can help you deal with sudden changes and prevent debt.
Here are some ideas to get you started
- Save loose change in a piggybank or jar. Set a rule such as ‘I will not spend any change smaller than a 20p’. Put these coins into your jar instead. Take the jar to the bank when it is full.
- You might want to rethink how you allocate your money. To keep track of spending, you could use prepaid cards or cash. For the money that you have set aside, you could create separate saving accounts. Consider setting up different savings accounts if you have different goals. Some banks allow you to create multiple savings pots in order to separate your money.
- Consider automating your saving habit. You can set up a regular Standing Order to your savings account, which coincides with the money you receive. Automated transfers will prevent the money from sitting in your current account and tempting you to spend it on unnecessary items. Automatic savings apps can also help you to save money by putting spare money from your bank account aside.
- Regularly have a money day
You can feel more in control and confident by regularly setting aside time to look over your finances and sort through your paperwork. Look at your budget, your recent expenses and any upcoming events. Also consider what you can do to make changes in the future.
