Our finances can be a complex topic, but it helps to stay grounded and get back to basics every once in a while. Here’s some basic financial tips to help you change how you think about money.
1. Always budget
Rich successful people did not get rich by not understanding their spending. Budgeting is fundamental to any financial planning. It’s the first point of action for any retirement savings plan. Compile a list of your essential spending and your discretionary spending – and then be as pragmatic as you can with the latter.
2. Reduce debts
Debt can drag you down and, as you get on in life, it can stop you reaching the retirement heights that you want to hit. Don’t be afraid to explore moving money to lower interest rate credit accounts – 0% balance transfers are great – to help you spend as little as possible in paying back those debts.
3. Making savings
Remember your essentials list? Time to inspect it a little bit closer. Check your utility providers for cheaper deals, scrutinise your spending habits, make a note of re-mortgage dates and give yourself plenty of time to prepare to get the best new deal.
4. Start saving consistently
Add regular savings contributions into your budget. They can be small to begin with, but make sure you can afford to do it every month. Spend a bit of time finding the right account or savings vehicles for you.
5. Check up on your nest egg
Nothing motivates like progress. Seeing the savings pot grow and watching your free money accumulate interest really rewards you for the hard work you did to create good financial habits.
Do you want more advice on making the most of your finances to support your life goals? Get in touch with Jason today.