Handling money well is a skill that is built up over time. Saving, investing, budgeting and assessing different bank products are important for having a healthy financial situation. However, it can be easy to feel out of control when it comes to your finances.
There are smaller changes that you can make which will improve your daily life. Here are some tips to help you boost your life.
Plan your spending
Tracking your spending can be a bit of an eye-opener. Little bits here and there for coffees, top-up shops and online subscriptions can quickly add up to a significant proportion of your monthly income.
Challenge yourself to track your spending for a month. Logging everything you spend will allow you to see where your money goes, and why so little is left at the end of the month! This can help you feel in control and reduce anxiety around your money.
Prioritise quality over quantity
Spending is unavoidable, but you can be mindful about where you choose to use your money. Invest in higher-quality, durable products and services.
Clothing is a key area where this can make a huge difference. Spending slightly more on a coat, for example, could be the difference between one purchase that lasts 10 years and several that last a fraction of the time. Not only will this save money in the long run, but it will reduce clutter at home, too.
Use technology to your advantage
Technology improves all aspects of life, so use it to your advantage. Budgeting apps help create a plan that you will stick to long enough for it to form a habit.
Being able to use credit wisely is a great tool for your future self when it comes to getting a mortgage or other types of financing. If your credit score is looking a bit low, investigate using a credit-building card. Not only will this show you are a responsible borrower, but it can also help you manage payments without overspending.
Cut small, unnoticed costs
If you have taken the time to track your spending, you may notice some areas where you can cut back. Subscriptions are easy to sign up for with free trials, but if you forget about them, the cost can add up. If you do sign up for a subscription, set a reminder before the free trial is up to ensure you cancel if it is unneeded.
Takeaways and other food purchases are also a huge drain. They can usually be explained away because food is essential, but there is a lot of financial waste. Make a weekly meal plan to help you create a shopping list and stick to it. You could also limit yourself to one takeaway per month as a treat.
Enjoy the rewards of conscious spending
Thoughtful spending can make a world of difference. Not only will you save money, but your mental health will improve without the stress of financial anxiety. Remember, you do not have to cut out all fun or treats, but just be mindful of how often you have them.
