It’s likely that many people will make liberal use of credit cards and other debt cards as they get caught up in the UK’s Christmas festivities. It’s hard to deny the fact that Christmas is expensive.
Many of us will feel the inevitable financial hangover once the dust has settled and the new year starts. But January doesn’t have to be all bad news. You can use this month to evaluate and review your spending habits. Small changes in your spending habits can make a huge difference in your bank balance, and put you in a good place for the coming year. Where can one begin? It can be difficult to manage your personal finances. Here are some helpful tips and hints that will help you get back control in the New Year.
1 Learn how to manage your finances
It is essential to fully understand your financial situation before you can put together any type of financial plan. It’s amazing how many people don’t have a good understanding of their finances. This will make it extremely difficult to create a long-term financial plan. It is a good idea to take a look at your outgoings and incomings. This will allow you to understand where your money is going, and most importantly, it will enable you to create a realistic financial plan.
2 impose some discipline
You should also be careful with your money. A savings account, for example, can help you manage your spending and encourage you to work towards a goal. This could be anything, from a deposit on property to a vacation. You can also limit how often your credit card is used. For example, you could set a weekly credit card spending cap or limit it to essentials. Spending discipline will become second nature as you continue to practice it. Although it can be hard to get started, you will soon feel encouraged when you see the results of your hard work.
3 Compare Your Options
Many of us settle for less expensive products or ventures simply because we don’t know all the options. No matter what service or product you are looking for – this could be anything, from car insurance to vacations – it is important to research all options. You can compare all the available deals and make a decision about which one is best for you. It’s amazing how much you can save by simply taking 10 minutes to look at your options.
4 Be thrifty
Finding creative ways to save small amounts of money is one of the best ways you can feel in control over your finances. These small savings can quickly add up to a significant boost in your bank account. Look for BOGOFF deals in supermarkets. Take an indirect route when you travel. Reuse wrapping paper from gifts. There are many ways to make changes in your spending habits. It’s okay to be creative. Although it may take some effort, the rewards will be well worth it.
5 Do not be afraid to ask for assistance.
Ask for help if you are having financial difficulties. Our research has shown that 41% of Brits believe their mental health is suffering from debt. Reaching out to a friend or family member who can help you lift the burden of debt will make a big difference. You can also turn to dedicated charities like StepChange for help. Talking about your worries is one of the best ways you can regain control over your finances. Then you can work with the professionals to get the help that you need to get back in control of your finances.