We all want to feel like we have enough money and that we do not have to worry about our finances, whether we are thinking of making a big purchase like a house in the near future, or we just want to be able to live a comfortable lifestyle that allows us to cover the basics and have a few luxuries along the way too, right? Well, in order to do that, we need to make money wisely and spend it just as wisely too, but we can also look at smart ways to boost our personal finances too.
If that sounds good to you, check out these 5 effective ways to boost your personal finances this year:
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Start with a clear picture
Before you do anything else or make any changes to your financial life, then it is sensible to make sure that you have a clear picture of your finances as they currently stand. List your income, monthly expenses, regular bills and any debt you might have, so that you can see in black and white what you are doing well, where you might be overspending, and how you can make savings without it having a huge impact on your current lifestyle.
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Create a realistic budget (and stick to it)
Once you know what’s what, then you are going to want to build a budget for yourself. It should cover all of your important outgoings like rent and bills, as well as non-essentials (coffee stops, subscriptions, take-aways) and then allocate what you can realistically afford to save each month. Apps and spreadsheets make this easier than ever.
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Build an emergency fund
Life is unpredictable, and having savings to fall back on can make all the difference. Try setting aside a small amount every month, even if it’s just a small amount. ver time, this fund can grow into a reassuring safety net for unexpected costs like car repairs or medical bills.
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Reduce recurring costs
Most of us have tons of subscriptions and recurring monthly commitments that we pay for and many of us do not make use of those subscriptions nearly as often as we really should to make them value for money, so we need to find ways to reduce those costs or make them more valuable to us. Could you switch to a more competitive energy tariff? Small savings here and there can soon add up. Cancelling unused subscriptions and negotiating bills can free up cash to either save or spend on what really matters to you, so make the time to do it.
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Check if you’re owed money
Many of us overlook money that could already be coming back to us. This could include tax refunds, overpayments on bills, or unused credits. Another area worth investigating is vehicle finance. If you’ve taken out personal contract purchase (PCP) deals or other car finance agreements, you might be able to make car finance claims and recover money you weren’t entitled to pay in the first place. It’s often surprising what you can uncover with a bit of research.
Here’s to a healthier financial year!