collaborative post // Everyone knows that getting your finances in order is one of the best ways to give yourself a more secure future, but only some people actually achieve it. Of course, there are many reasons for this – not least because personal finance can be quite a dry subject.
However, if you’re someone who feels like their money is constantly slipping through their fingers, the problem probably isn’t that you find Money Saving Expert articles uninteresting.
Whether you struggle to stay on top of your finances or want to ensure you’ve got everything nicely organised, making some changes could save you plenty of pain later on. Here are some ideas on how to overhaul your finances and save £££ in the process.
Talk To A Financial Advisor About Your Financial Goals
If you’re struggling with your finances, getting some clarity on where you stand financially is essential. An excellent place to start is to sit down with a personal financial advisor who can help you to understand where you are with your current finances and help you to draw up a plan for getting your finances into shape.
Regularly speaking to a financial advisor is a good idea and can keep you on track towards your financial goals. Keeping your finances in order is a long-term process, so there is no quick fix. However, getting in contact with a financial advisor can help you prioritize your finances and ensure that you’re making the most of your income and assets.
Be Honest About Your Spending
People often want to avoid admitting that there is often a difference between what they want and what they can actually afford. However, if you want to get your finances in order and start saving, you must be honest about how much you can spend.
Regularly keeping on top of your spending and ensuring that you’re not spending more than you can afford can go a long way towards helping you to overhaul your finances and save money.
If you need help determining where your cash is going, keeping a record of your spending for a few weeks might be helpful. You may be surprised at how much certain things cost!
Start Saving – Even Small Amounts Help!
If your finances are a little out of control, you might be tempted to focus all your attention on paying off debts, bills and other outgoings. However, it’s important to remember that saving money is another great way to get your finances in order and feel better about your future.
You can start small with your savings, but it can make a big difference in the long run. If you can spare £10 a month, you’ll have around £120 to play with after a year. Keep saving, and the amounts start to add up and become useful for other things.
Pay Off Biggest Debts First
Debts are a fact of life for most of us, and it’s not always possible to pay them off straight away. However, starting with your most significant debts is best when trying to overhaul your finances. This is because paying off your highest debts first will give you the most benefit.
The most effective way to do this is using a debt payoff calculator to determine how long it will take you to pay off your debts and how much it will cost you. Once you know how long it will take to pay off your debts, you can prioritise the one with the highest interest rate. This will save you money in the long run and get you out of debt quicker!
Shop Around for Better Rates and Deals on Household Bills, Insurance and Services
Another good way to make savings is to shop around for better rates and deals on your household bills, insurance and other services you have. This could save you hundreds of pounds annually and help you to overhaul your finances.
Keeping your eyes peeled for better rates and deals is easier than you might think. Many banks, for example, will offer you a deal based on your current account and spending habits. Additionally, you can use plenty of comparison websites to find better deals for all kinds of services.
If your finances are a mess, there’s no better time to get them in order than now. Take your time putting things off and saying you will change your spending and saving habits during the winter months, for example, when less is going on in your life. Taking the time to make small changes can make a big difference in the long run.