With the cost of living continuing to increase each year which incudes, increases in rent, travel, food and bills, weekly disable income for the average person is much lower. In fact there are many families living on the poverty line. With the effects of Brexit seeing the fall of the pound fall sharply and financial uncertainty, managing your personal finances is becoming even more important. The following article provides some great personal finance tips to help us manage of monthly finances.
Personal Finance tips
Have a monthly budget
Whether you operate a monthly or weekly budget, accounting for all your outgoings which help control your monthly spend. Rent, travel and bills will be monthly fixed costs. Have a monthly allowance for every outgoing including food, bills, travel and other expenditure. This will help you see where your monthly income is going and help you control each cost ensuring that you stay within budget. It is really simple but actually seeing where your money is going each month can make a really big impact on your monthly finances. This also helps with saving money each month.
Managing credit cards
We all have them, but not managing your credit cards effectively have a big impact on your monthly spending. Always remember to pay off your monthly balance especially if you have high interest payments. Try and use your cards that have a low rate balance transfer which will help reduce your monthly repayments by saving money on interest. Some credit cards have 0% interest if repayments are made each month. Try and use credit cards sparingly. Some supermarkets offer great deals on store credit cards with 0% interest if the balance is paid off monthly. This can help for food shopping as you can track spending against your budget if paid for on a separate credit card. Repayments can then be made each monthly once you have been paid.
Energy bills rise each year so it advisable to switch supplier annually. Look at all suppliers and see where you can save money. Take the time to compare energy prices. In some cases you can save £300 annually just by changing energy suppliers.
Look at your weekly spending and see where you can make savings. For example how much money do you spend on treats such takeaways, alcohol and snacks. Also look at other expenditure such as clothes, memberships, weekly entertainment and any subscriptions. These are all areas where you can save money each month