There is never a bad time to set ourselves financial goals. Some of us are good at managing our money, and some of us struggle. Whatever the case, we should always plan for the future. We never know when disaster might strike, and we might want to plan for our children, as well as ourselves.
These are the financial goals we think you should set to give yourself a brighter financial future.
Record your expenses
Whether you use a mobile app to help you keep your finances on track, or use the simple paper and pen method, ensure you know how much you are spending. Make a note of everything, from single purchases at the local store to the cost of your monthly bills. This is one habit you need to keep on top of, as knowing where your money is going is your best bet in knowing where to save and cut back.
Reduce your debt
It may take you years to clear your debts, but set yourself some attainable goals. How much can you reasonably afford to pay each month? Set yourself a target and stick to it. Should you have multiple debts, the good idea is to amalgamate them into one monthly payment. So, as crazy as it sounds, take out another bank loan or credit card, but find one that offers low or zero interest. This way, you will get out of debt sooner.
Set up an emergency fund
Search for the best savings interest rates, and set up a savings account. Only put into your savings what you can afford each month, but something is better than nothing. Having the extra money to hand when you need it in an emergency will reduce some of your stress. Again, knowing how much you spend helps. Stick to your budget, and if you have any money left over at the end of the month, put it in the emergency fund.
Save on household bills
There are many bills we pay each month, but we can cut down on the expense. For starters, use a price comparison service to find a better deal. Then make it a habit to cut down on the energy you use. From remembering to switch lights off when you leave a room, to reducing the number of baths you take a week, make it an effort within your family to set yourself this energy saving goal.
Remember your pension
There is some great advice here for saving for a pension, and no matter how old you are, there is no bad time to start. We will all get old, eventually! Your company may already pay money into a pension fund, but if you have the means, you should also top it up on a regular basis.
Stop wasting money
Finally, make a concerted effort to stop wasting money. You may have a bad habit, such as smoking or drinking, or you may go crazy at the supermarket on things you don’t need. Try and cut back on addictions (and that includes shopping) and only buy what you need. There is no harm in treats occasionally, but you need to spend within your means.
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