Keeping on top of your finances can seem like an impossible task. From paying utility bills to finding the best deals, there are so many things to think about.
So, what are some basic steps you can take to gain control of your financial life?
Below, we’ll share three smart tips for better finances.
Get out of debt
UK household debt has more than doubled over the past two decades. So, if you’re struggling with debt, don’t think that you’re on your own.
You need to deal with your debts as soon as possible. The problem only gets worse the longer the interest rates accrue – and this is only compounded at a time when interest rates are rising.
There are several strategies you can choose from, including:
- Snowball method –Tackle your debts in order of smallest to largest outstanding amount. You’ll gain momentum as you pay off each balance, rolling the minimum payment of the previous debt onto the next.
- Avalanche method – Pay off your debts from largest to smallest interest rate. This lets you pay less interest over the long term, as well as helping you get out of debt more quickly.
- Debt consolidation – Debts consolidation loans bring together multiple debts into a single monthly payment. This makes it easier for you to track your debts and make your monthly payments on time.
Regardless of which method you choose, always make the minimum payments for all your debts to prevent them from piling up.
Build your credit score
A strong credit score can give you access to financial advantages, including more product options, offers from a wider variety of lenders, and even lower interest rates.
In the long run, you need to find a consistent method for improving your credit score. But for starters, you can take basic steps such as registering on the electoral roll and making all of your credit payments on time.
Minimise your expenses
When your expenses get out of hand, they can prevent you from meeting your financial goals. Yet if you stay on top of your outgoings, you’ll be able to save more money and achieve the outcomes you want faster.
If you want to improve your finances, search for ways to minimise unnecessary expenses. You could try:
- Selecting generic or ‘value’ brands
- Bulk buying non-perishable foods at a discounted rate
- Taking advantage of coupons and store loyalty programs
- Subscribing to memberships that give you discounts
- Using comparison websites when online shopping
- Cancelling any subscriptions you haven’t used in the last month
Then, once you have stable finances, you may want to get into estate planning for the future.
Which of our smart tips above could best help you improve your finances?
*This is a collaborative post. For further information please refer to my disclosure page.
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