Today we want to help you to put more money in your pocket and have enough to spend on those things that you want to, rather than have to, spend it on.
Here are our 6 money savvy tips.
Save on pay day
We will start with this one as it is one of the first rules when you earn an income and it is one of the easiest habits to get into. You should always save on pay day.
If you know that your salary goes into your bank account on the 28th of every month, set up a standing order to your savings account for the same day. By doing this, you will never adjust to having the greater amount in your account and you will not be able to accidentally overspend and have nothing left by the end of the month.
It is always worth keeping your savings separate from your everyday checking account so that you can see the savings accruing, get a better rate on them and avoid inadvertently dipping into them.
Don’t splurge on that car
We can all have our heads turned by that brand new shiny car and its showroom smell, but in most cases you are better off buying second hand when it comes to your transport.
Many cars lose most of their value as soon as they pass from brand new to your hands, so by buying a car that has had one or two previous owners you will have avoided the most significant depreciation period.
There are also plenty of programs out there, such as the cash for clunkers program, that will help you to get the best deal for your existing car when you buy your next one, so do look into any available deals and offers running.
Pay off debts before adding to savings
There is little point in acquiring a sizable pot of savings if you also have sizable debts running alongside it. You are going to be paying out interest on those debts that is likely to far exceed any interest that you will be earning on your savings.
In addition to this, if ever you are looking to take out a mortgage or other form of loan, the lender is likely to take into account any existing debt repayments that you have so outstanding debts will reduce the amount that you can borrow.
Prioritize paying off any debts first, then save.
There are two areas where this rule does not apply, just two. The first would be your mortgage. Whilst you would save plenty of money over the longer term if you become mortgage-free faster, in general we accept that this is a long term debt and they often have competitive interest rates, unlike a lot of personal loans and credit cards. It is worth building up a savings pot alongside your mortgage.
Secondly, if your debt is interest free, do not rush to pay it off. You could earn income on savings whilst this debt runs its course, and then ensure that you pay it off before any interest becomes payable on it.
Always make your payments on time
The fastest way for you to build up a bad credit file is to regularly make late repayments. The fastest way to build up an excellent credit file is to pay your debts on time and have a few debts to show that you do pay.
Now, we are not telling you to get yourself into debt to get a good credit record, but it is well worth taking out a credit card or two and demonstrating to lenders that you can use them sensibly by paying them off in full every month. This allows your credit file to start to build up.
If you do not trust yourself to use credit cards responsibly, do not go anywhere near them as late payments and getting yourself into a mess with creditors will stay with you for a long time and make it very difficult for you to borrow in the future.
Find yourself a side hustle
The term side hustle seems to be so common now, because it feels like almost everyone has one. A side hustle is a form of earning income alongside your regular job.
There are seemingly endless possibilities with this one, and it does make sense to set yourself up with a side hustle whilst you have the time and means to do so.
You will want to play to your strengths with this one, and that can be the skills that you have acquired through work or any other talents or passions.
For example, alongside your day job, you might run your own online store, you might offer pet sitting services, you might take graphic design commissions or perhaps you will write your own blog.
Anyone can set up a side hustle. Just ensure that you are running it in accordance with any regulations around that specific industry and that you are declaring it as an extra income.
Declutter and sell on regularly
This is so simple to do and it helps you to keep your home and belongings tidy and in order, which is even better.
Make it a habit to have a thorough declutter at least twice a year. When you do this you need to be honest with yourself about whether you really need everything that you own and whether you think it is reasonable that you will use it, wear it or enjoy it again.
When you have cleared everything out you are likely to have three piles of items. The first you will bin, the second you will donate or recycle and the third you can sell on.
You can use local selling sites or the well known auction and buy-back sites to sell your belongings, and you will find that you can sell anything from phones to clothes to books to homewares and more.
This is a great way to keep your home clutter free whilst also adding a little more to your pocket every few months.
