So, it’s that time of the month again; payday followed shortly by bill day. It’s a continuous monthly cycle of earning money, spending money, and saving money. Combined with mortgage or rent payments, energy provider statements, car expenses, phone bills, and any other monthly outgoing spend, the total amount can rack up quite quickly. This makes it hard to keep track of what’s coming and going, then before you know it, your well-earned wage is gone.
If your money flashes before your eyes, then maybe it’s time to take a look at your financial situation and give it a refresh.
Traditionally, wage slips and bills would arrive in paper form in the post, and before you knew it, you’d have 20 folders of financial documents taking up space in your spare room. Now, the majority of the population manages their finances online and digital applications have replaced hardback planners and expanding file folders. Online banking is just one online phenomenon that allows you to access your account balance, standing orders, and transactions with the click of a finger.
Yet, with most people owning more than one bank account, often comprised of a current account, a shared account, and a credit card account, financial information isn’t often automatically stored in the same place. Luckily, there are mobile apps like Yolt which allow you to connect to each of your bank accounts via one profile so that you can see your total balance across each account.
Additionally, apps like these show you your monthly transactions and where, on average, your money goes. This way it’s easy to identify what you’re spending your money on and where you can make cutbacks if you’re trying to save.
Re-evaluate Your Bigger Monthly Spends
When it comes to outgoings, the largest sum of money often comes from a property or a car. Deemed as essential, you can’t just make cutbacks in these areas, but you can investigate alternative options. This is where mortgage advice websites such as Trussle come in. Exploring re-mortgage options is an easy task that could be worth your while.
Providing a comparison service of around 12,000 mortgages, sites like these can save you up to £290 a month. This means that you could reduce your outgoings by a large sum but continue to enjoy your property. Equally, it could be beneficial to take a look at the options available for car payments – you could even possibly get a better deal on your utilities.
Set Yourself a Monthly Budget
Once you’ve organized your finances and investigated where you can make cutbacks to save money, it’s advised to set yourself a monthly budget so that you can make the most of the additional money you have in your bank account.
Many online banking apps now allow you to set targets in terms of monthly savings and outgoings and by doing this, you can get an idea of how much of your wage you are putting away, and how much you’re able to spend on that spontaneous shopping spree. By doing this, it simply strengthens the organization process that you initially went through and sets a monthly pattern for you to follow so that you don’t find yourself in a financially awkward situation.
Everyone’s financial situation is different, and that’s okay. Yet, that doesn’t mean we can’t all handle our finances in a similar way to manage the money we do have. Hopefully, this article helps you do just that.