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Financial Tips

In the current climate, many of us are having to take extra special care of our finances, as a recession caused by the pandemic inevitably bites. There is never a bad time, but perhaps now is an even better time for some financial tips.

Pay yourself first

You need to look after yourself primarily, then worry about others. That may sound heartless, but the most important finances are your own. Get them on an even keel as your number one priority.

Financial Tips – Large Purchases Need Time

We all want that nice shiny item every now and then. I desperately want a new laptop for example. Or that nice holiday or car upgrade. But unless such a purchase is vital and necessary, then do not use credit cards to buy it. Set a goal, and try and put money aside to pay for it.

Regularly Check Credit Report

You should check your report at least annually. You should be able to check it for free, and see why your score is what it is, and remove any mistakes too if necessary.

Emergency Funds

Look, this is simply not possible for many people, for those that can put money aside, the next few points will cover the best way to make the most of excess income. And first up, emergency funds are a must. As we have all seen in recent months, none of us know what is around the corner. So it is a great help to have access to funds should the need arise. This could be due to a job loss, emergency repair or holiday.

Plan For The Future

It is easier said than done of course. But if you can, do not just think about the present, but also the future. Apart from having an emergency fund, think about a proper savings account. And also a pension, as none of us want to work until we die. Put as little or as much as you can afford. And remember that if employed, then your employer must provide a pension under UK law.

Financial Tips – Pay Off Credit Cards

Credit cards are not free money, though it can feel like it at times. Because of my credit card debt, i always pay in cash, or i did until the pandemic. That way i know what i spend is real and has consequences. If you do use your credit card, only do so if you have the money to pay off the purchase within a month. Otherwise, it could end up costing you more than the price you paid at the time. But for those wishing to improve credit scores, do not automatically cancel credit cards should you have no further use for them. It can actually help more to have them active with zero balance.

Budgeting

There is no perfect way to budget and there is no perfect tool to use to monitor your finances. Budgeting is personal to you so use whatever methods work. Whatever method you use, show that you have a full understanding of what you are spending each month by writing down what goes out and what comes in regarding your finances. You may be able to save a huge amount of money and use your income much more efficiently and responsibly.

Buy What You Can Afford

A simple financial tip. If you cannot afford something quite simply you should not buy it. Only buy things that you have the money for. The only exception is for essential purchases such as a vehicle repair or vital home improvement. Otherwise try to plan for the future and save for that purchase if you do need something like to book a holiday. Remember that not everything has to be paid upfront and some things that can be paid off do not incur interest charges like some holiday package deals. Do your research, search the Internet and use word of mouth to find deals that suit your financial situation.

Financial Tips – Food

Make your own lunch if you work away from home or even if you do work at home. Buying in food during the daytime and in the evening is extremely expensive in the long term. Plan ahead and ensure that you have the ingredients to make your own food and you will see your money go much further.

Not A Competition

Ignore the lives of other people around you including family and friends.  Life is not a competition so if someone you know has a bigger house or a new car that does not mean you need the same thing and you certainly do not need those things to be happy. Just ensure that your situation is what you want in life.

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