In these testing times you may need to keep an even sharper eye on where the cash is going. Now might be the time to give your finances the once over, work out how you can make savings and help your money grow.
New year, new budget
Despite our best intentions, it doesn’t take long for New Year’s resolutions to fall by the wayside. But one that’s worth sticking to throughout 2012 is making sure your money is taken care of.
Keeping an accurate budget is a good way to start, as once everything’s down in black and white it’s easier to see where your money’s going. Go to www.goodwithmoney.co.uk/budget-calculator and enter your monthly income, then fill in what you spend on accommodation, bills and savings, plus purchases such as food, clothes and holidays. The budget calculator will also show you how much disposable income you have once everything’s accounted for, and what it could grow into if you put some or all of it into a savings account.
Sort out your money
A few small changes add up to a big difference. Get into the habit of reading your bank statements carefully each month. It will help you keep track of your money and highlight areas where you might not realise how much you’re spending.
Write it down
If you are having trouble budgeting, get a notebook and write down everything you spend for a month. You’ll be amazed at how much you spend without realising it.
Be honest
Try to keep your budgeting as accurate as possible. Don’t forget to include evenings out, trips to the cinema and even takeaways. Make a list of upcoming expenses such as holidays or birthdays, then you won’t be caught out by unexpected demands on your wallet.
Review your regular bill payments
Use price comparison websites to see if you could pay less for your utilities, or ring up another provider and ask for a quote. Check you’re on the best phone, internet and mobile phone package for your needs. And consider your mortgage or any insurance you’ve taken out too.
Saving for a rainy day
Life can be unpredictable, so it’s vital to have money saved in case the unexpected happens. If you’re working, try to have three months’ salary in an easy-access savings account as a cushion. Or consider taking out income protection, which gives you a monthly income if you can’t work due to illness or injury. It’s also a good idea to consider the future. A chat with a Co-operative Financial Adviser* could help you with your savings, investments or pension needs.
Prioritise your debts
Many of us experience financial difficulty at some point in our lives. It’s important to take early action to stop your debts getting out of control. Speak to those you owe money to as soon as possible and try to come up with a realistic repayment plan. The situation will only get worse if you ignore it, and your creditors may charge you additional interest or late-payment fees into the bargain.
Struggling to stay afloat?
Pay off vital ones such as utility bills, mortgage/rent or council tax first, then tackle the ones with the highest interest rates, as they will cost you more the longer it takes to pay them back. If you’re struggling with repayments there are organisations offering free, impartial and confidential advice such as the National Debt Line, Citizens Advice, Payplan or the Consumer Credit Counselling Service.
Visit www.goodwithmoney.co.uk or request a chat with a Co-operative Financial Adviser* to help review your finances in full.
*Any advice from Co-operative Financial Advisers will relate only to a range of the products and services available from members of the Co-operative Financial Services marketing Group and a limited number of other companies.