Staying in control of our monthly financial commitments can be challenging at times. Even when think we are on top of them, unexpected things can crop up. Having a contingency is useful but regrettably not always possible when there is very little left at the end of each month. Here are 3 ways to make a positive difference to your household finances.
Preparing a carefully considered and accurate budget can do wonders for your bank balance. This will give you a good indication of how much you have left once all of your essentials have been taken care of. Write down your monthly income in one column and your monthly financial commitments in another. There may, of course, be things that are only paid once a year like car insurance or gym membership. Calculate how much you spend on those per annum and divide by 12. Transfer this amount each month in a separate account. When the time comes for these to be purchased you will have the money set aside to pay for them outright. If possible, set aside a percentage of what is left into a savings account each month. Even if only a few pounds, it’s good to know that you have some money set aside should something unexpected crop up.
Review Your Monthly Bills
Analysing your monthly bills can give you a clear picture of where savings can perhaps be made. Do a comparison online to see if your energy provider is giving you the best possible deal. Many providers are offering very competitive rates so switch if necessary. Reducing energy consumption can also make an impact. If rooms are unoccupied, switch off the lights. If making one cup of tea, don’t fill the kettle. Not only can small changes reduce your bills but you will be helping the environment too. The biggest financial commitment most of us have is a mortgage. Speak to a broker or check online to see what mortgage products are currently available. Remortgaging could save you thousands over the lifetime of your mortgage. Whether reducing the mortgage term or switching to a better interest rate, the savings could be massive.
Selling and Buying
Getting rid of items which are no longer needed is a good way of making a bit of extra money. Whether it’s furniture you no longer need or DVDs that are gathering dust, get organised and sell as much as you can. Not only could you make a few pounds, you can declutter your house in the process. Believe it or not, you can also make money when buying things too! Many retailers and service suppliers work alongside companies like Topcashback and Quidco and will give cashback whenever you purchase from them. It only takes a few minutes to join. When buying online make sure you check prices from more than one retailer. You may be surprised at how much you could save by shopping around.