Cast you mind back to new years eve 2018. You may have been full of vibrant ideas for the next year ahead. 2019 was going to be your year. Your time to get into shape, get fitter, progress in your career and maybe sort your finances out. Money is often a popular resolution to have as so many like the idea of getting out of debt or increasing their disposable income. So how have you done when it comes to the promises that you made? The likelihood is that you made some progress in one or two areas and the others have been forgotten about. Money tends to be one of those things not thought of. So here are some of the ways you can get that resolution back on track and make the next six months a financial success.
What financial goals do you have?
One of the first things to think about would be what financial goals do you have when it comes to money. It may be that you want to clear debts, it could be a savings goal. Take the time to really think about what it is you wanted to achieve financially. Even if it means increasing how much you earn month by month. Having the goal can help you to start planning all of the ways that you can achieve it and put together an action plan to help you make it happen.
Is it time to invest in property?
Getting on the property ladder is a huge financial goal, so is it one of yours? Maybe you have been thinking about it for some time, perhaps you like the idea of thinking about how you might invest some bonuses you have earned, or perhaps you like the idea of taking that plunge and moving into your first home that you own. If this is something you want to do then put the plans in place to make it happen. Focus on your credit score, look at mortgage options, and figure out exactly how much you need to make it happen. Only you can take the necessary steps to achieve this goal, and it could be the ideal time to do it.
Should you seek professional advice?
When it comes to finances, sometimes it is worth taking the time to speaks with professionals. You may have a good chunk of savings and not know what to do with it, or perhaps you need some advice on investing. This is when a financial planner can really help you out. Anything to do with your finances can be a tricky subject to navigate, so rather than make mistakes you could speak to an expert on what it is you want to do so that you have the facts and figures that are correct.
The next thing to think about would be that you need to take some time to think about the budget that you have in place. Your budget should include all of your bills but there are forth forgotten things that people need to budget for that we don’t consider. Think about commuting costs, think about bills you may have your vehicle in a few months time such as regular services and maintenance. Maybe you need to budget for lunches or take out coffee. Add everything into your budget as this can really help you to see exactly what your financial position is.
Check your recent bank statements
You also need to take the time to think about your bank statements and analyse those as best you can. Going back through the last three months may highlight payments and money you spend that you haven’t included in your budget. It may also highlight regular payments that you may have thought were cancelled, the most common ones being a gym membership or a magazine subscription. You may find other rogue payments you didn’t know existed, so this can be a great exercise to do a few times a year to check you are on track with your finances and your budgets. Who knows, doing this may increase your disposable income because of lost payments.
Make debts a priority
Many people have some from of debt around them, don’t they, so you may want to think about how you can start to make these a priority. Think about how you can make debts a priority by focusing on the,largest balance or the one that costs you the most interest. Work out what you can spare to pay on top of the minimum. And start to reduce the balances. You could also look at consolidating debts into one loan, giving you one payment, one charge, and a payment plan to have it paid off in full. There are options out there that can help you.
Cut your costs
Are there any ways that you can cut your costs? There are always bills that you can reduce, habits you can change, that will help increase the amount of disposable income you have. When was the last time you changed provider for things like energy or insurance products? When was the last time you actively reduced how much you spend don food? Changing providers and taking on habits like meal planning can help to keep these costs down. You could also look at hanging where you shop and switching from well known brands to cheaper alternatives. Small changes can make a big difference to your bank balance.
Give something up for the next six months
Is there anything that you can give up? Maybe you don’t need that take out coffee in a morning and you can bring your own? Maybe you don’t have to have Netflix for the next six months. Work out what you could give up and then actively transfer the cost into your savings. You will soon see the savings balance rise.
Boost your income with side hustles
Finally, you can always boost your income by making the most of your spare time. There are many articles online that share different side hustles you can try that can enable you to earn a little extra.
Let’s hope these tips help you to make the next six months a financial success.