Trying to keep your finances organized can be a nightmare. There are so many expenses to track that it always feel as if you’ve missed something. All the monthly or yearly bills you face from dozens and dozens of different providers can start to pile on top of one another. Pretty soon, you forget where the majority of your money is going. Your main focus is simply to make sure that you’re earning enough to cover all of your costs. However, you could improve your relationship with money by tidying up your expenses and making smarter moves regarding your future. Here are some small ways to make a big improvement to your finances.
The first way in which you could make a big improvement to your finances is to save money on the essentials. You can start by making a budget or taking another look at your budget if you already have one. It’s wise to track your expenditures on a monthly or weekly basis to make sure that you know where your money is going. There are certain unavoidable costs that are essential in the modern world. Take a look at how much money you spend on your mortgage payments (or rent), energy bills, water bills, food, gas, and all the other basics. The money that remains after you’ve paid for these things is your disposable income. If there’s barely anything remaining then it might be time to rethink your essential purchases so as to give yourself more excess cash each month. As we’ll discuss later in the article, it’s wise to have some money left over so that you can make investments and also start saving money.
First of all, you don’t need to cut back on the things you need in order to save money. You don’t need to take things out of the grocery basket or sit in the dark at home to save money on your energy bill. There are ways to reduce your spending on essentials without having to give up on the things you need. For example, you could reduce the cost of your grocery shop by growing vegetables and fruit in your own back garden. Stores charge ridiculous amounts for their branded fruit and veg, so you might as well save yourself a fortune by becoming self-sustainable. As for your energy bills, you could get thicker windows and insulate your walls so that you can keep your house warmer without having to generate so much energy. That’ll massively reduce your monthly bill.
Believe it or not, we’re not going to suggest that you forego all luxuries. In this article, we’re trying to give you financial pointers that will make a positive difference to your overall monetary situation. You can treat yourself to luxuries in life, but you just need to make sure that you’re disciplined. Splurging is never a wise use of money, but being overly-frugal means that you’ll deny yourself any sort of enjoyment in life. You could set aside a “luxury fund” that goes towards any non-essential purchases you want to make each month. You could account for the luxury fund in your budget, and that means you’ll be able to limit and track your spending on non-essential items.
Perhaps you could set aside a set amount of money for clothes every month (this will stop you from excessive shopping). You could even give yourself a small allowance for online gambling. You might want to read up on Bitcoin casino legality if you’re curious as to the rules regarding this. It’s completely legal, and you’ll avoid any risk if you stick to the funds you set aside. Just make sure you only ever use your “luxury fund” for such non-essential purchases, and you’ll never have to worry about spending beyond your limits when you’re having fun. This is the best way to save money on non-essentials. If you’ve reached your spending limit then you can just buy a particular luxury item the following month.
We’ve talked a lot about budgeting, limiting bad spending habits, and cutting unnecessary costs. However, one of the best ways to improve your personal finances is to embrace free things in life. If you’re taking the family out over the weekend then think about fun things you could do for free. Again, as mentioned in the last point, it’s about being frugal whilst not spoiling your own personal enjoyment. Going to the park or the beach can make a fun and completely free day out. You could even see if there’s a free festival in your local area because towns and cities often put on events for the general public throughout the year. There are plenty of ways to have a day out with your family without spending a thing (unless you count gas for your car and any food you may want throughout the day).
In terms of your everyday expenses, there are occasionally ways to embrace free things too. When you’re online shopping, make sure you hunt down vouchers and coupons that could be used on the stores you browse. Many sites will give out free offers to first-time customers to get them hooked, so it’s smart to check out the latest free deals before purchasing something on the internet. There are plenty of sites that can help you hunt down the best online offers. It’s worth thinking about before you rush to buy something from an online store. You could be getting the same exact thing without spending any money; or, at the very least, you could save a huge amount of money by finding a discount code.
Another small way in which you could make a big improvement to your finances is to start making some investments. You need to think about the future if you want to improve your financial situation, as we’ll discuss in greater detail towards the end of the article. The best way to protect your money for the future is to increase your wealth. Your salary doesn’t have to be the only source of income for your household. You could start seeking opportunities to multiply your money. You might want to read up on the Bitcoin industry that’s currently experienced a resurgence in popularity. Getting the best returns on investments is all about striking opportunities at the right moment. Trading in stock can also be a wise investment move, but you need to be a patient and calm investor who knows when to sell and when not to sell.
The property market is also a good investment opportunity for people who are new to the world of investment. With advice from estate agents, you could be on your way to buying your first property, fixing it up, and selling it on for an increased value. The housing market can be highly profitable for investors who know what they’re doing. You’d be surprised by the amount of value you could add to a property with a tiny bit of DIY. It’s a very valuable asset to own because buyers could be willing to pay thousands more than you did when you initially bought the house. Of course, you could also consider buying a property to lease it. Earning regular income as a landlord can be another nice way to pay the bills if you have the financial backing to make the initial investment. However you invest your money, the marketplace is unpredictable. Still, patience and practice will reward any investor.
You should treat yourself to things with your earnings, as we discussed earlier in this article, but you shouldn’t burn through all of your income. We’ve already talked about budgeting to cover the costs you face in life, but it isn’t enough to simply make ends meet. Breaking even when it comes to your personal finances might be fine in your present situation, but you need to think of the future. What about your retirement? You won’t be earning money forever. And what will you do if an unexpected cost arises that you didn’t foresee in your budget? Not everything can be planned in life.
If you want to be prepared in terms of your future financial needs and any unexpected expenses that may come your way then it’s important to save some of your money. You might want to set up a standing order to transfer a set amount of your income to your savings account on a monthly basis. It could be set to take place every payday so that you’re not tempted to spend your excess cash before you have a chance to save it. That’s a smart way to make sure that you’re always working towards building up your savings account. You’ll have money for any sort of emergency, and you’ll also have some additional savings to go towards your retirement or your children’s university funds in the future.
CEO and Founder at Mighty Shouts.
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