Want to get better with your money in the remaining half of this year, and kickstart 2021 in a better financial position than what you started with in January? Sick of scraping along to pay day week in, week out, and thinking of ways to get in a better financial position going forward? For those with financial aspirations, we’ve compiled some simple tips and tricks in order to try and help you get closer to financial freedom.
Put your goals in place
Start by sitting back, talking to your partner or family, and figuring out what your immediate and long-term financial goals are. Setting these boundaries will give you something to work towards, and thereby serve as a measurement of success that your new strategies are having any effect on your daily life.
Dissect your paycheque
Too many of us get overexcited when that money comes in at the end of each month, and are too eager to start spending it and enjoying ourselves before paying out the necessary evils. It might seem like a given, but get into your head that the amount you get paid is not the amount you have available to splash out on the non-essentials. Subtract your bills, subscriptions, food costs, and other necessities right away, and then try as best you can to dissect the rest, allocating it accordingly to some of the other stuff you want. Of course, this isn’t to say that you can’t splash out or have fun at all with your money, but be reasonable!
Feel like you’re paying out too much? See if you can switch energy supplier, or broadband/mobile contract to shave a few dollars off those monthly expenditures. Perhaps also cut down on some of those subscription services if you don’t read that magazine, or if you no longer watch that programme that you used to enjoy.
Be stringent with your money
As a general rule of thumb, try and be more frugal in your day-to-day, and cut out different things that you know you can go without. Sure, it might be a little bit more convenient and exciting to buy your lunch every day while you’re out at work, but simply thinking about how much it will cost overall on a monthly or even annual basis will quickly surprise you. Simple steps like this will help you get into an overall conscientious ‘savings mindset’, and you’ll quickly feel better when you see those small amounts pile up into savings each and every day.
Save and invest for the future
Not enough people save their money anymore; recent studies have shown that one in ten British people have no savings at all. If you fit the bill of being the sort of person that doesn’t have any rainy-day funds to speak of, or financial cushions to fall back on, start putting some of the fruits of your labour to one side. Having that money stored away in case of an emergency is an excellent way of taking a bit of the pressure out of your life. Money shouldn’t get you down but having it there in waiting can give you more confidence on a daily basis, as you’ll likely be less afraid of failure and running out of runway.
If you’ve started to build up a decent savings pot and want to do something productive with your money rather than just leaving it in an account, perhaps start thinking about how you can invest it in order to build up your portfolio for the future. From simple steps such as micro-investing using apps like MoneyBox on your smartphone as you shop, to something more long-term like an investment in property, there are a wide range of possibilities and opportunities. If you’re unsure of where to get started, RWinvest offers a variety of videos, podcasts and guides on investment, the property market, and the best places to start when building up your financial future.
Remember, having investments and a varied portfolio is perhaps the best way to secure yourself financially in the long term. There are of course risks involved with any investment strategy, but some of the most lucrative earners out there are the ones putting their capital back to work for them, growing further in the process.