It is estimated that five and a half million people in the UK struggle to effectively manage their finances.
With the cost of living still high and wages failing to match up, more and more people are finding it hard to curb their spending and make a plan to budget for the future.
Yet there are simple ways of controlling your spending and learning to reset your habits so that you can start saving for the important stuff.
Set savings goals
Having a plan for your money will give you a clear idea of what you are saving for and thus will help motivate you to curb your spending. Whether it’s saving for a car or to pay off debts, make sure it is a goal that is rewarding but realistic.
Keep track of your budgeting
Make an effort to log all your outgoings into a budget spreadsheet so you can keep an eye on where money is being lost. This will help you to identify what simple habits need to be changed to save valuable pennies. It may just be a regular coffee you purchase every other day but cutting down will make a big difference.
Maintain a balance on spending
Paying off all your bills before you intend to spend money ensures you have a clear idea of your finances, and this means you will be less likely to overspend. When you are unsure of your finances, you are more likely to spend frivolously. Awareness provides willpower.
If you see something you want to buy wait three days to consider whether or not you really need it. Shopping can be impulsive, and once this feeling wears off we often find ourselves lumbered with stuff we will never use.
Pack your lunch
Getting up five or ten minutes earlier to prepare a packed lunch before work will save you money and will help you to eat much healthier. Buying lunch everyday can be a very costly habit, and you never know how much salt and sugar your on-the-go food contains.
Cancel emails and catalogues
Retailers sending emails about the latest deals can be hard to resist, so to avoid temptation unsubscribe and remove your name from mailing lists. After all, out of sight means out of mind.
If you are really struggling with your finances and finding it difficult to deal with mounting debt, you may benefit from seeing a life coach. A life coach can offer money advice and helps you to move forward financially. To find out more, please see our finances page.
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