Would you like a financial boost? There is no better time than the beginning of the year to take a good look into your finances and to begin boosting your financial fitness. Lots of people set financial resolutions in the new year, but these tend to be large and longer-term goals such as: saving for retirement, buying a home, making six figures, or buying a car outright. Realising the timeline for these goals can be very frustrating and put you off taking care of your financial situation altogether.
However, don’t be disheartened! It’s best to start small when looking at your finances as well as keeping those long-term goals in mind. These smaller goals and financial repairs are much easier for you to manage in the shorter term. Looking after the smaller and more minor parts of your finances is what makes your big goals, such as funding your retirement or paying off the mortgage, possible.
Here are some of my tips that you can do to keep on top of your finances this year and make it your best financial year.
How to give yourself a financial boost
Budgeting may seem like the oldest trick in the book. But if you commit to it, it’s the most important first start. You need to take a hard look at your expenses, these consist of everything that you spend money on. Categorise each of these items into home payments, utility bills, insurance, monthly direct debits, etc.
The best way to find your monthly expenses is to check your bank statement. Did you know that a lot of online banking apps categorise your expenditure and income for you? Get in touch with your bank or have a look online if this is a service that they offer.
Now it’s time to think about what budgeting plan suits you and your goals, here are some examples that might interest you:
Zero-based budget: This ensures that every pound is spent effectively. You assign every pound to something and if there is any money left over then you can use it to pay off extra debt or put it towards savings.
Envelope budget: This means that you set a limit for spending in each of your categories. This helps you to stop unnecessary spending.
The 50/30/20 budget: This helps you to break spending down into three sections. 50% goes towards large expenses like home, utility, or car payments. 30% goes towards flexible spending like subscriptions, gym memberships, and spending. 20% goes towards savings or paying off debts. Once these budgets have been maxed, you can’t add more to your spending limit.
Adjust Your Means to Get a Financial Boost
Saving for a lot of us can be harsh, but after you have thought about your budgets it’s equally important to look at how much you are spending each month. Start cutting back on your unnecessary monthly splurges.
Do you really need to have more than one takeaway a week? Examples like this can save you over £250 a year!
Start living within your means. Do you really need all those extra Sky TV channels? Why not start making sandwiches for lunch? Can you get a second job? (We will cover this!)
Consider cheaper alternatives for things, instead of spending £150 at M&S for your food shop, start shopping at Aldi! There’s no shame in adjusting your means to make your life more comfortable in the near or distant future.
Optimising Cashback Schemes
Did you know that you can opt into a cashback card that offers top-notch benefits and will fit in with your spending habits? If you are or want to become a UW customer, then you’re entitled to sign up for your own cashback card!
Cashback cards such UW’s offers you up to 7% cashback off your utility bills! You can save money by spending your Monday, really saving whilst you spend which is something that we all dream of.
You save when UW bundles all your services into one bill, and on top of that, all the money that you spend on your cashback card comes directly off of your monthly UW bill. This means, you really can save twice with the amazing services that Utility Warehouse offers.
If you want to save money whilst you spend money, then get in touch! This is really an offer that is difficult to turn down.
If you’ve looked at your income already and worry that you don’t have enough to get by, then building wealth through passive income is a strategy that might appeal to you.
How can you earn passive income?
You can start by shopping around for bank accounts, there are some bank accounts that offer you money for switching your bank to them! Make sure that you are looking into the interest rate of each bank account out there. This is the best first start to earn passively, even if it’s only small!
You can also earn residual income by joining companies such as Utility Warehouse. Joining Utility Warehouse was one of the best decisions that I have ever made and has allowed me to become financially free and to fund my retirement and beyond! It’s an amazing job and made for anyone, anybody can be a UW partner.
Would you be interested in earning your own residual income and want to learn more about the benefits? Then get in touch with me and you can start earning your own residual income today!