The task of budgeting can be a daunting one, especially if you’ve never done it before. But often the thought of doing it is much worse than the execution.
Nowadays, there are hundreds of different online tools that can aid you in creating your monthly budget. So providing you’ve got access to the internet, you can budget on the train to work, during your lunch hour or in the comfort of your own home.
One of the major advantages to having a monthly budget is that it gives you a much better understanding of your financial situation. From there, you can then start to make some informed decisions. Could you reduce the amount you’re spending on eating out? Are your transport costs higher than you’d like them to be? How can you increase your disposable income?
In today’s article we’re going to reveal 3 of our top budgeting hacks that can help improve your finances.
Weed out your budget busters
Nowadays we’ve all got a lengthy list of non-essential outgoing, or what we like to call “budget busters”. These are things like movie or music streaming services, magazine subscriptions and online gaming accounts. These things could be considered a luxury and when your priority is saving money, you need to keep luxury items to a minimum.
By cancelling a handful of unnecessary subscriptions, letting go of that morning coffee and prepping your lunch, you could quickly find yourself £100+ a month better off.
Generate multiple income streams
If you’re already working 60+ hour weeks, this one may not be for you. However, for the regular 9-5ers, taking on a second job is a fantastic way of improving your finances.
This could be as little as a Saturday morning role in café, a few evening hours in a bar or some Uber driving on Sundays. Earning an extra £50/week may not seem like much, but at the end of the month, an extra £200 income can make a significant difference to your finances.
There’s a whole host of websites out there that can help you find some part-time hours. If you’re unable to find anything for you, ask around your friends or family or pop a status on Facebook or LinkedIn.
Prioritise your credit cards
Most of us these days will have at least one credit card in our purse or wallet. For some, a credit card will simply be a way of improving their credit score, whilst others may use it to make ends meet during tougher months.
What many of us don’t realise is that credit cards are probably costing us more than we expect. Interest rates on credit cards are typically quite high which means that interest can build quite quickly on the outstanding balance. So, whilst covering the minimum payment each month may make you feel like you’re making progress, the interest that is accruing daily will be undoing almost all of your hard work.
The quicker you can clear your credit card debt, the more money you’ll save long-term. So, rather than paying the minimum payment each month, start paying £50/month, then once you feel comfortable, increase your payment to £100, then £150 and so on.
So there you have it, 3 very simple budgeting hacks that will improve your finances. Have you made any changes to your life that have dramatically improved your financial situation? We’d love to hear about them – drop us a comment in the section below.