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Obviously, money is a huge part of life. Learning how to manage your money the right way is an important step toward taking control of it.
Summer is here (apparently), and it’s not always the preferable option to be managing your finances indoors when you want to be out with family or friends. Though, if anything, it’s worth remembering that in these warm-ish months we tend to spend more on road trips and meals out. It’s harder than you first think to keep track of what’s being spent. Though, there are a few useful tips to help you out.
You need to think about fixed costs first; you’ve got to know how much you’re working with, after all: fixed costs are expenses that are the same every month, like rent or the Sky bill. Once you know how much you’re spending and where, then you’ve got your basic expenses covered. From there, you can work out how to deal with them.
Next, you can work out the variable costs. These are the slightly more unpredictable ones; you have an electricity bill coming out every month, true, but the exact amount will obviously depend on how much energy you use in that month. Another variable cost that can easily be forgotten, is the amount you spend buying birthday gifts for friends! Be aware of how much you want to spend, and stick to it.
Now you’ve thought about spending, think about things to save. Your monthly pay-check is an obvious one, and making sure that is paid directly into a savings account, where possible. That means instant savings!
Of course, you need to also consider life-changing events too; getting a new job, or a new house, having a big wedding or having a child are big ones. Oh, and taking a holiday! Every time one of those big changes happens, revisit your budget to see if you should change the way you’re spending. Make sure that your budget reflects your values as a person and the things you prioritise, and you should be fine.
For more useful saving tips visit: www.freshstartltd.co.uk