How to Make the Most of Your Money

We all have money coming in each money and then going out to buy various things. However, it can feel …

We all have money coming in each money and then going out to buy various things. However, it can feel like we hardly see it and it is a constant struggle to afford everything that we want and need. However, it can be good to see whether we can make the most of our money in different wats so that we hopefully feel that the hard work that we are putting into earning it, is worthwhile. 

Check You are not Overpaying for Things

IT is good to start by making sure that you are not overpaying for the things that you are buying. We all buy all sorts of things and we do not always check the prices to make sure that we are getting good value for money. It can be a good idea to start doing this with everything that we buy. This includes insurance, utilities, broadband, food and everything else. It can be great to work through every item we buy methodically and start to change to buying cheaper versions. There will be some things that you will not want to switch, such as your favourite brand or shoes or coffee, but there are likely to be a lot of things that you will happy to switch and you will be able to spend a lot less money. It will take time to do this but the amount that you can save could be well worth the effort. It can be a good feeling too, knowing that you are not overpaying or things and that you are not needlessly spending too much money.

Repay Some Debts

If you have debts then you will be paying money out on interest payments for having that debt. This can be really expensive and it can be avoided if you repay the debt. Some interest will be higher than others so target the higher interest items first. Check there are no expensive charges for repaying it early and then work hard on repaying it bit by bit. It will be hard work and you will have to tighten your budget even ore for a while. However, it will be worth it because once the debt is gone you will no longer be paying out that interest and you will also no longer owe the money which can be mentally freeing too.

Clearing debt can be a great way to make the most of your money.

Save Some Money

It can help to also put some money into a savings account. Again, you will need to work hard to do this and by less but it can be really worthwhile. It can be really good to have some money behind you though. It will mean that if you have an emergency and need money quickly, it will be there for you. It can also mean that if you need to buy something expensive you will have the money behind you to do so and you will not need to save up or get a payday loan online in order to afford it. It is also good having money in a savings account because you will be paid interest on it. That means that you will get an income from the money for doing nothing at all. Of course, different accounts pay different levels of interest and you will need to think about whether the interest that you are earning is competitive or whether you want to move the money to a different account in order to get a higher level of interest. You may need to tie the money up or put it into a notice account to get more interest and it is worth thinking about whether this is something that you want to do.

How to Reduce the Cost of Your Loans

Many of us have loans and they do cost a lot of money. It is a good idea to think …

Many of us have loans and they do cost a lot of money. It is a good idea to think carefully about them though and see whether there is a way that we can pay less for them. There are a few things that we might be able to try which could help us.

Switch to a Cheaper Lender

The first option to consider is whether it might be cheaper to switch to a cheaper lender. You will need to start by researching the different loans and their costs and think about whether you can find one that will be cheaper for you. There is a lot of competition in the area of loans and so it is probably likely that you will be able to find one, especially if it has been a while since you took out the loan. Make sure that you do not just look at the type of loan that you have. For example, if you have an overdraft, then it is likely that the interest rate will be very high. If you pay it off with a personal loan, then this could save you a lot of money as the interest rate is likely to be a lot lower.

However, do be careful if you do this. If you pay off an overdraft or credit card with a different type of loan, you will still have those options available to you for future borrowing. This means that you might be tempted to take start borrowing using those again while you are still repaying the loan that you took out to repay it. This could lead you towards being in even more debt and financial troubles so consider whether this might be a risk for you.

It is also good to make sure that you check how much the repayments on the loan will be. When switching loans, it is easy to just be driven by cost and interest rate, which is not surprising, but you also need to make sure that you will be able to afford those repayments. They may be higher than what you were paying before and if you miss any, then you will have additional charges which you will not want to have to pay.

Overpay the Loan

If you repay more than necessary for the loan then you could start to reduce the balance owed more quickly. This will be reflected in the interest that you are charged and you will start paying less. This can have a great knock on effect and you can find that the money you save in interest, you will be able to put against the loan and you can slowly whittle it down. This can mean that you will repay it sooner and therefore save money on it.

You will need to check that this will save you money though. There are some loans that have an early redemption charge, which means that if you want to repay it early they will charge you a fee. This may be quite small and well worth paying, but it could be quite expensive. It is well worth checking to see whether there is such a fee on the loan that you are considering overpaying and calculate whether it is worth paying the fee and repaying early or whether it will make it too expensive.

Of course, if you are paying more than is needed for the loan, then you will have to find this money from somewhere. It could mean that you will have to take on extra work to be able to afford to do this or that you will have to spend less elsewhere. It might not be much fun to do this and you will need to decide whether it is a sacrifice that you are willing to make.

Should I Pay for Goods in Instalments?

There are some places, such as some shops and online companies as well as insurers that will offer the option …

There are some places, such as some shops and online companies as well as insurers that will offer the option of paying for goods in instalments. This is something which might seem like a fun thing to do but there are draw backs as well. It is a good idea to consider both the advantages and the disadvantages so that you can decide whether you feel that it is a good idea for you to go ahead with.

Advantages of Paying in Instalments

  • If you pay for goods in instalments it means that you will be able to afford them more quickly. Often things that we want to buy cost too much for us to pay for immediately. If this is the case with the items that you want to buy, then you could get them quickly and then pay for them over a series of months or years.
  • You will not have to bother about saving up for the item and delay buying it. If we have to save up, we will have to cut down out spending elsewhere and make sure that we put some by until we have enough to buy it. This can be tiresome and take a long time.
  • We may alternatively borrow from elsewhere. This can be a hassle to set up and we may need to have credit checks and things like this in order to get this sorted out and it could take a long time. Setting up instalment payments is often much easier to do and therefore a more attractive proposition.

Disadvantages of Paying in Instalments

  • If you pay in instalments you will normally have to pay more for the item. This will mean that although you get the item sooner you will have a price to pay for that. You will have to decide whether you think that it is worth paying this extra money in order to get the items sooner or whether you would rather save that money, pay less for the item and just wait to get it.
  • Saving up for the item can not only save money but give you the opportunity to think about how much you want it. You may find that by the time you have saved up, you decide that you no longer want it any more. IT might be that there is a better item available on the market that you want instead or that you feel you have managed this long without it so you can manage for longer.
  • Borrowing from elsewhere might be cheaper. It is good to compare the prices of the two types of borrowing so that you can think about whether it is better to apply to someone else to borrow the money. It may take a little longer but consider whether you are willing to wait that time so that you can spend less in the long run. It could make a considerable difference.
  • You may find that paying in instalments is no dearer than buying the item right away from a specific retailer. However, be wary of this because they might incorporate the cost of the loan into the item price and you might be able to buy exactly the same thing cheaper elsewhere.
  • Be careful that you are not tempted to buy the item just because it has the option of paying in instalments. Think about whether you really need it and whether it offers you good value for money. Imagine if it was not available like this whether you would be willing to buy it still and whether it is the instalment deal that is swaying your decision.

How to Save for University

If you or your children are thinking of going to university then you may be thinking about saving up. This …

If you or your children are thinking of going to university then you may be thinking about saving up. This is a sensible idea because although there will be a loan on offer and also sometimes a grant as well, there will still be a lot of things to pay for and these may not be enough. It can also be good to get into the habit of thinking about budgeting and minimising what you are spending because this is something that you will need to do when you are studying. So, what sorts of things should you be doing to help?

Save a Certain Amount Each Month

It is good to start by putting away some money each month. Many people will save by putting anything they have left just before they are paid into a savings account. While this is better than saving nothing, it can mean that you will not save very much because you tend to spend all the money that is available. It is therefore better to set up a transfer so money goes into your savings account as soon as you get paid. Then you know that it is there and you will have to manage on what is left. If you still have some left at the end of the month you can still move that into the savings account as well but it is likely that if you save some at the start you will put away more each month.  

Cut Back on Spending

It is wise to start cutting back on the money that you spend. This is easier for some people than others but there are a few tricks that you can try. Firstly, make sure that you compare prices of things when you buy them. This will enable you to be able to see whether you are paying more than necessary for items. For example, we all tend to pay for utilities, insurance, phone contracts and things like this and often will just continue using the same provider all of the time. It is worth comparing prices between providers as you will then be able to see whether you can save money by switching. It is easy to switch and you could end up saving quite a bit of money which will add up to a significant chunk if you switch all of your providers. Compare prices in shops as well and you could find that you will soon be spending significantly less and therefore have more money available to save. You can also try to buy less items and this will save money too.

Earn More

You may find that this is not enough as you want quite a bit of money or you already compare prices so cannot cut back very much. If this is the case, then you may need to look and see whether you will be able to earn more money. There are different things that we can do to increase what we are earning. Some people get a second job and work extra hours, but not everyone will have the time or stamina to do this. Some are able to change jobs, get a promotion or ask for a pay rise. However, most people would just have the option of earning money in their free time. This is a lot easier than it used to be because there is online work that you can do. It is easy to pick up freelance jobs, although they will not pay as highly as regular jobs, but you will often be able to pick and choose between jobs to find one you like and do it at home.

Tips on Motivating Yourself to Save Money

If you want to increase your savings, then you may find it hard to get motivated to do it. Many …

If you want to increase your savings, then you may find it hard to get motivated to do it. Many of us have the desire to save up more money but just find that we do not do it and end up spending instead. There are things you can do though, which will help you to be able to be more successful at it.

Write Down the Reasons

It is good to start by writing down the reasons why we want to save more money. There could be all sorts of different reasons for wanting to do this but there will be something that is important to you. Write this down. The reason we need to write it down rather than just thinking about it is that it has more impact on it. In fact, it is good to also write down what your specific goal is – perhaps to put £100 a month in my savings account for two years to go towards the cost of my wedding’. Something really specific like this will help you to focus on what you want to achieve and you will know exactly why you want to achieve it as well.

Imagine What it Will be Like Once Your Have Achieved your Goal

It can be a good idea to also think about how good that feeling will be when you have achieved your goal. Think about how good you will feel when you have done it. This ca really help to motivate you because you will want to work towards that happy feeling that you have imagined.

Constantly Remind Yourself

It is a good idea to remind yourself a lot of what you are trying to achieve and why. This is because we can easily run out of motivation for doing something and this will mean that we could give up and no longer bother. If we keep not only thinking about the fact that we need to have it, but why we are doing and revisiting how it will feel when we achieve it, we will feel much more motivated to achieve it. So stick a note someone and make sure that you read it regularly so that you are able to keep reminding yourself of the goal at least daily if not more often.

Set up a Regular Transfer

It can be useful to set up a regular transfer of money into your savings account. This will ensure that you do not forget to save the money. If the money leaves your account at the beginning of the month then it will not be available to spend. You will need to be careful though and make sure that you limit your spending so that you do not run out of money when you do this. It is something a lot of people manage to do though and so it is possible, but you will need to keep a good check on your bank balance through the month to check this.

Ask Yourself if you Really Need Purchases

When you are buying things, it can be a good idea to ask yourself whether it is something that you really need. We often buy things through habit or because we like the look of them and do not think too much about them. If you can change your thinking and ask yourself whether you really need the items that you are buying, then this can help you to be able to check whether you are actually buying items that you really need and want or just buying things without really considering if they will be worthwhile.

This website uses cookies and asks your personal data to enhance your browsing experience.