Finances are a hot topic of conversation right now, especially with the state of the economy. However, we also know that there are a lot of people who avoid talking about it because they feel embarrassed by their current financial situation, or they find it generally awkward to talk about money.
The thing is that if we don’t talk about things, then you’re never going to know how to make the best possible financial decisions. It’s important that you can do this so that you can have a more secure financial future, and we’re going to help you. Let’s take a look at what you can do.
Create Your Budget (And Update It)
Before you do anything else, you need to create a budget. This is what is going to keep you within your means, and ensure that you do not end up in a whole load of debt. Now, it’s true that debt is not the worst thing that can happen to you if you’ve had no other choice in the past, but it can be tough to get out of. The good news is that you can get out of it, so if you’re already in debt, don’t worry because with your budget, you can account for paying these off in installments.
When you create your budget, you need to think about all of your income and all of your expenses. We recommend making two lists here, and then using your outgoings to work out how much you’re going to have left. For those pesky bills that have a few pennies on the end, always round up to the next whole number to be safe. Then, when your financial situation changes, you need to be updating your budget to reflect that, otherwise it’s pointless having one,
Saving Where You Can
You’re also going to need to start saving where you can. This is possibly the best financial decision that you will ever make, aside from getting out of debt, because it gives you a form of security. If you ensure that you’re saving, you don’t have to worry about things going wrong. Of course, it’s preferable if they don’t, but you’re covered just in case something does happen. For example, if your boiler breaks down and you’re nowhere near payday, you have the funds to fix it without borrowing.
You don’t have to save a lot every month. You can either include this in your budget so you’re saving the same amount regularly, or you can just put what you have in your savings account. Some months are going to have more expenses than others, that’s just the way it goes.
Try A New Hobby That Doesn’t Cost Much
Having hobbies is great, but if you have too many then perhaps you need to cut down on some. Or, if you know that your hobbies are expensive, maybe try to find something that you can do that costs you a little bit less? For example, if you like going to the casino and playing card games, maybe try playing bridge or blackjack online instead without the stakes attached to it? Or, if you love going skydiving, maybe try mountain climbing as you still get the thrill, albeit different, without the massive cost.
It won’t be the same, but it’s similar and doesn’t cost you an arm and a leg regularly, helping you to improve your financial future. Sure, you can treat yourself every now and then, but keep it on the lower end as much as you can for everyday life.
Make The Most Of Offers And Promotions
When you have a favorite shop it can be tempting to always look and see what they have available. However, try and avoid doing this unless they have a sale on or some other form of promotional offer. While you will be saving money, you also need to ask yourself if you need this. Making the most of promotions and offers means you won’t be spending as much as you would if you bought the products at normal cost.
Companies will send out emails regularly with upcoming sales so make sure you are always checking these.
Start Saying No To Yourself
It can be so tempting to just throw money away when you have it, we all do it every so often and then we regret it. So if you are thinking about buying those expensive shoes or handbags then stop and think for a second. Do you actually need them or do you simply want them because you don’t have them? This isn’t a good enough reason to part with the cash that you may need further down the line. That’s the problem that will always come back to bite you when you don’t say no to yourself. You never know if a large surprise bill will be coming your way that you haven’t prepared for.
Saying no to yourself can be incredibly hard, especially if you aren’t used to it. Practice makes perfect, start small and then build up. You will be saving money either way, no matter what you say no to.
Speak To A Finance Professional
Lastly, think about who will be able to help you with these big important financial decisions in your life. If you can’t speak to loved ones about it then how about seeking out the help of a finance professional. They will take a look at your incomings and outgoings, check which ones are vital, and which ones you can say goodbye to. If you are left with money at the end of the month after this then you will have made a great decision. Having money left is a huge worry for some people as they then don’t have any to put away for a rainy day fund.
Make sure, before you chat to anyone that you are checking reviews. The last thing you want is for someone to come along and say the right things but not have the experience or qualifications you need.
Hopefully this article gave you some hope that there is a future where you make better financial decisions. This is a learning curve and something that you must focus on when it happens. Face your difficulties head on and don’t run away from them, this will be better for you in the short term and the long term.
Daniel is a Cinnamon Hollow author passionate about house and home, renovations, homesteading and DIY.
