With Christmas and New Year finally behind us, January is a time to start worrying about finances all over again. Everyone’s bank account takes a hit at the end of each year but it’s what you do about it that counts.
Although recent polls found 50% of Brits thought they could save money by taking a more considered approach to their finances, 16% didn’t know where to begin and a further 15% thought the research involved was too time-consuming. Getting on top of your finances doesn’t have to be overly strenuous though – and here are a few money saving resolutions which could inspire you to cut costs.
Plan a debt-busting budget
According to uSwitch.com, 17% of Britons are still paying off debts from Christmas 2011 – let alone the one just gone. Instead of letting them rack up year upon year you should start to plan a way to bring debts down.
This does not necessarily mean cutting all spending immediately but instead look at what you pay every month and work out a way you can pay enough money to start reducing your debts. Set yourself targets and consider consolidating multiple debts into a single payment to make it easier to manage.
Switch to a low-rate balance transfer card
A really good way to save money in interest is to look for a new credit card that offers 0% on all balance transfers. There are many out there so good research is vital.
Look for one with a similar, if not lower, interest rate to your current card(s) that has a period of at least 18 months. This way you can realistically lower the debt rather than just paying off the interest.
Check your outgoings
It is not just card debts that take up big chunks of your earnings, many people are paying for services they just don’t need. Even a £10 magazine subscription or similar can cut money off your outgoings and contribute significantly towards clearing your debts.
Invest wisely
We all get excited by deals we find online but ask yourself if the purchase is really necessary and, if not, consider putting the amount you were about to spend in savings instead. You’ll be glad you did in the long run.
Shop around for new insurance deals
Perhaps the biggest way of saving money is by shopping around on your insurance. Check price comparison websites or visit insurers such as Lloyds to find out the latest industry news. Keeping abreast of current affairs can help you understand how prices may change over coming months and allow you to make a more informed decision.
By adopting these approaches towards debt management and financial planning you could not only reduce the amount of money you owe but you also tackle any stress you experience as a result of money matters. Research by a leading price comparison site found 77% of people claimed their money worries would increase over the coming year and taking decisive action now could address this problem before it has time to escalate.
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