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Get control of your money!
Please make sure that you’re spending less than you are earning, and using the difference to fund savings and investments to get the miracle of compound growth working for you.
You should aim to spend less than you earn each and every month.
If you already do this, great. You are on the way to gaining control of your money, you just need to get the money that you are NOT spending to start earning interest. You can do this by paying yourself first: set up a direct debit into a savings account just after pay day and put that money to work right away, so you don’t get tempted to spend it elsewhere.
Budgeting- the key to a healthy bank balance, it is not as scary nor difficult as it sounds.
To start, make a list of your regular bills and how much they cost each month, this will give you insight into your main areas of your expenditure.
Please make sure that you’re spending less than you are earning, and using the difference to fund savings and investments to get the miracle of compound growth working for you.
You should aim to spend less than you earn each and every month.
If you already do this, great. You are on the way to gaining control of your money- you just need to get the money that you are NOT spending to start earning interest. You can do this by paying yourself first: set up a direct debit into a savings account just after pay day and put that money to work right away, so you don’t get tempted to spend it elsewhere.
Budgeting- the key to a healthy bank balance, it is not as scary nor difficult as it sounds.
To start, make a list of your regular bills and how much they cost each month, this will give you insight into your main areas of your expenditure.
If you’re not sure, keep a spending diary for one month, make a note of everything, even the 50p for a bar of chocolate or the paper on the way home. At the end of the month, tot it all up to see how much and where you spend it.
Once you know your outgoings you can start to trim them.
You should not need to cut back on things you enjoy, but rather get better value for money for the stuff you have to get anyway! If you are seriously overspending then you will have to be more drastic.
Start trimming the fat-reduce your outgoings by attacking (trimming) one major bill each month, prioritise the bills you pay on a regular basis, as, one phone call can lead to sustained and significant savings.
For a lot of people this could be hundreds of pounds by switching a couple of things, and it’s quite straightforward. You shouldn’t have to look too hard either!
- Financial products-mortgages, savings accounts, credit cards
- Energy- you can usually get a better deal by switching providers
- Getting around- you can check out the market online, women drivers and clean records always get good deals. This also works for rail/coach journeys too.
- Getting away: you can save at least the price of a meal by shopping around before you buy, there are lots of online resources to find accommodation, excursions and breaks.
By Leighton Dawkins
Independent Financial Adviser
Direct line: 020 7665 8597
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