From getting your five a day to taking up regular exercise, the start of a new year is an optimistic time for a lot of people, all planning towards a better 2019. Along with improving your health, it’s also important to better your day to day life, and one good way to do this is to really get to grips with your finances. If you’re struggling to pay the bills and make ends meet each month, want to save for a big holiday, or you just want to make enough money to quit your day job, try these ideas to get your finances in order this year.
Track your spending
So much money goes out each month, often without us even realising. If you don’t keep track of your finances in some way, it can be easy to end up with no money at the end of the month. Keep track of everything you’re spending money on throughout the month, making a note of the big outgoings like bills as well as smaller purchases. Those morning coffees might seem cheap, but it all adds up quickly. You could either keep a physical diary where you write in each days spending habits or make a spreadsheet, calculating what money you have left as you go along.
Make some cuts
After tracking your spending and seeing what you’re left with at the end of the month, you’ll get a better idea of the things you’re spending your money on. A lot of the time, the necessities like bills and food take up a large chunk of our monthly costs, but you’ll be surprised to notice how much you spend on little luxuries. Rather than buying expensive lunches every day or going for drinks in the pub every Friday night, think about ways you can cut the costs, such as preparing your own packed lunch and having a night in. You can still enjoy yourself and reward yourself with the odd treat now and then but making some cuts to your spending habits can have a big impact on your finances.
Save as much as you can
Once you’ve got a clear idea on what you’re left with at the end of the month, and made some cuts, you should be able to afford to start putting money into your savings. It doesn’t matter whether this is £20 a month or £200 — any amount you can afford will help. A good idea is to set up an automatic standing order into your savings account. This way, you won’t forget to transfer the money, and you’ll become more used to the money leaving your account each month.
Earn some extra income
Another great way to improve your finances in the new year is to look at how to increase your income overall. If you have skills in a specialist field such as copywriting or social media management, consider trying to secure some freelance opportunities to earn money alongside your day job. If you have some extra money to spare and you’re thinking about investing in your future, becoming a buy to let landlord is one of the most popular and lucrative ventures you could undertake. When done right, and with the right property investment company like RW Invest, you can boost your finances with extra rental income. With time, things like freelancing or property investment could end up earning you enough money to pursue this full time and it can be a great way to reach your long term financial goals.
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