Want to make 2022 the year you really get to grips with your finances? Maybe you’ve decided you want to get rid of your debts once and for all? Or you are looking to purchase your first home and need to save for a deposit? Perhaps its as simple as you’re fed up of living pay check to pay check, wondering where your money is going, and would love to understand your finances better. You want to start being able to put some money away for the future or a savings goal (a Holiday? Birthday? Christmas? New car?) These are all great reasons to get started with understanding your finances.
I think the last 2 years (covid!) have shown people how important it is to understand where their money is going, how much is coming in and maybe start putting some aside to have an emergency fund for the future. These 4 simple money tips are a great place to start with your money management, and will set your up on the path for success for 2022!
Make a budget
This is the most basic place to start when you are looking to get to grips and understand your finances! You need to sit down with some pen and paper, work our all your monthly incomes, then all your necessary outgoings (bills, insurance, classes, memberships, subscriptions etc) and make yourself a family budget. This needs to include set budget amounts for all your outgoings such as food, going out, clothes or even savings post for holidays and birthdays. Once you have it all written down, you can see how much money you have left over, this either goes towards a savings pot, your ‘fun money’ or if needed towards debts!
You might find a budgeting app helpful for keeping track of your finances on the go. There are lots of different ones available at the moment, and each offer different services, so have a read of the Top 10 Budgeting apps here and see which might fit your needs the best.
Check out this Ultimate Guide on Family Budgets for loads of tips and tricks to get your budget in order!
Get to grips with your debt
Debt can be a huge burden on your monthly finances and can cause a lot of stress if you are struggling to keep on top of it. Getting rid of any debts you have should be a major priority when you are looking to get your finances back on track. If your looking for more information on debt consolidation or to find tips on how to reduce and pay off your debt, check out this site for more info. Once you are clear of your debts you will free up money in your monthly budget to allow you to put towards savings goals or future plans.
Reduce your outgoings
Another great thing about decided to get your finances in order is that it allows you to see exactly where your money is being spent, and it tends to make you far more conscious of your spending habits. Quite often you will be surprised by how much you are spending on certain things, and in some cases how much you are simply wasting on unnecessary stuff. So this allows you to start cutting back on items that really aren’t needed, and in turn beings to lower your monthly outgoings, again freeing up more for other more important things
And its not just frivolous spending you should be looking at reducing. Its great to get into the habit of regularly using sites like Money Supermarket or Go Compare to check if you are getting the best deal on your household bills and insurances. If you are able to lower your monthly bills you can make a big saving over the course of the year. This goes for things like tv, internet and phone packages too. Really asses whether you need the ice of the contracts you are on and if not consider lowering them or getting rid of them completely.
Increase your income
Ok so this might not always be possible. But if you’re wanting to get your finances back on track, or you’re wanting to reduce your debts, then finding a way to earn an little extra income can be a great way to do it. This could mean picking up overtime in your day job, taking on a second job if its possible, finding one off jobs like seasonal work or mini jobs, or even selling unwanted items from around your home or your wardrobe. Plus there are a number of ways to make a few extra pennies online or via your phone, things like survey sites, matched betting or even blogging are a great way to make extra income. You can then add this to your savings goals or throw it all at that debt your looking to get rid of
Don’t forget to look at sites like Top Cash Back and Quidco to see if you can make even more savings when you switch by getting cash back on your purchases!
In Conclusion
This is just 4 simple money tips to really start getting to grips with your family finances for 2022. They will help get your started on the road to more financial independence and keep you financially confident for the future.
