Collaborative Post
Be honest with yourself now. How long has it been since you last checked your bank balance and were pleasantly surprised? Drawing a blank? Let’s make it a little easier. How long has it been since you didn’t feel icy shivers of dread run down your spine when you opened your bank statement or checked your balance online. Yeah, thought so. Don’t worry. It’s a perfectly natural consequence of losing control of your finances… as many of us have. Living in the 2020s is expensive, especially if you’re raising little ones. As of last year the bare minimum cost of raising a child from birth to the age of 18 is over £75,000. Hardly chump change, even for those who are successful in their careers.
Taking on debts, deferring to credit cards and piling debt on top of debt may seem like the only way to get by these days, no matter how frugal you try to be. Still, living that way catches up with the best of us sooner or later. Don’t make the mistake of assuming that your finances are a mysterious and unstoppable force for that your financial wellbeing is outside of your control. But it’s not a matter of quick fixes or bold statements. It’s not even about making extra money from a side hustle. It’s just a matter of doing as much as you can as often as you can.
Here we’ll look at some ways in which you can improve your household finances one day at a time.
It begins with budgeting
Don’t you just hate that nervous flutter that your tummy does before you check your bank balance or open your statements when they come in the post? Doesn’t it feel as though the figure on the page or screen is leagues away from the figure you had in your head? The good news is that you can liberate yourself from this feeling once and for all.
It all starts with drawing up a household budget. Use one of these useful templates if you’re not sure where to start.
Only by accounting for everything that’s coming into and going out of your account can you begin to take control of your finances, identify wasteful spending and truly right the ship. Want to manage your budget on the go? Fortunately you live in the 2020s and there are a multitude of mobile apps that can help you to take the guesswork out of budgeting.
Take control of your debts before they take control of you
It’s common to feel a degree of nervousness (and even guilt) when it comes to our household debts. But the absolute worst thing we can do about debt is bury our heads in the sand and hope that it sorts itself out.
Because deep down we all know that it never will.
The only way to undo the damage debt does to your household finances is to grab it by the proverbial horns. Stop wasting a fortune on interest. Keep moving your credit card to lower or zero interest cards. Is your credit score such that the only cards available to you have sky high interest rates? Consolidating your debts might help to improve your credit score. This is because all of your debts are repaid and replaced with a single new one. It’s also much easier to manage and can save you a fortune on interest.
Choose a savings account that works harder for you
Many of us just don’t see the point in saving. We either tell ourselves that we can’t afford to put anything away “this month” or that the anaemic interest rates of our savings account make saving pointless anyway.
But let’s be clear here. Saving anything every month is always a good idea. What’s more, if your savings account’s interest rate is below 1% you need to swap it out for a savings account that works harder to grow your money. The longer you can go without easy access to your money, the more interest you can expect to make on it. Still, there are plenty of easy access savings accounts which will make you more than 1% interest.
Supplement your savings with some careful investing
There are many who choose to supplement their savings with careful investing in order to grow their wealth without undergoing huge risks. Fortunately there are a number of options for would-be traders. With all kinds of options and commodities from foreign currencies to precious metals to binary options there’s a wealth of opportunity for those who are prepared to do their homework. Plus, with a wealth of trading and brokerage sites and apps available it’s easy and secure to do on your lunch break or even on the bus home from work. Just make sure you start small and really get to know whatever market you’re investing in so that you have a well balanced risk : reward ratio.
Stop treating shopping like a leisure activity
When it comes to wasteful spending perhaps the most egregious culprits are rainy Saturday afternoons. Those days when we’re at a loss for something to do and so take ourselves off to the shopping centre. Shopping has become a leisure activity rather than a means to get things as and when we need them. And while you’re out you’ll probably be stopping for lunch or at the very least a pricey coffee. This is a recipe for cluttered homes and woeful finances. Find something else to do with your weekend. Your wallet will thank you for it.
Make more money with apps
Finally, if you have a smartphone and a little free time there are a wealth of apps to choose from that will pay you money to carry out simple tasks. Some reward you for taking surveys while others pay you to watch videos. Some will even pay you to take a look at your online browsing habits. While you won’t make a fortune overnight with such apps, spending half an hour every day on them can add up to a big difference come month end.
Take control of your household finances and take advantage of the digital means at your disposal to improve your household finances one day at a time.