In this guide, we will be providing you with suggestions as to how you can manage your personal finances as well as tips that when followed correctly could help you to save money. Finance management and saving money go hand in hand and generally you can’t have one without the other as they work in tandem, or oftentimes, one precipitates the other. For example, if you are practising skilful or intelligent personal finance management then you will hopefully (if executed correctly) have money left over at the end of each month which you can then add to your savings.
There are multiple reasons why having a good grasp of your own personal finances and the inherent management procedure(s) is a good habit to get into. Below we have listed the possible positives of well enacted personal finance management:
- Having your financial affairs in order can create peace of mind and help to alleviate stress and/or worry around money
- It is always best practice to know where your money is going, what you are spending your money on, and how much money you are spending across the board on bills etc
- Budgeting (as one of the most important aspects of managing your finances) is an important aspect of modern day living, and creating one for yourself (and sticking to it with rigour) could help you to save money long-term
Saving money is another vital aspect of modern life. Many people save for years so that they can afford certain luxuries later on. People also save for the traditional “rainy day”. The following are reasons why saving could be a good idea and of benefit to you:
- Adding to a “rainy day” fund can help you out of an emergency in the future, allowing you to pay for vet’s bills, dental bills, medical bills, emergency household repairs, car repairs etc
- Having sufficient savings can help you to pay for a deposit when you decide to get yourself on the property ladder
- With a large savings pot in place, you can finance your dream wedding without incurring debt or cutting back on the most desirable aspects of your special day
The above are of course just examples and the benefits of saving money are vast and varied.
How To Manage Personal Finances
By setting yourself a budget, and by sticking to it, you could save a set amount each month, with the added benefit of being able to see exactly where your money is going as well as how much you have left each month after all the essentials (bills, rent, mortgage etc) have been paid.
Learn Your Expenditure
This may seem like a simple tip, but a surprising amount of people will not be able to tell you how much they spend on food each month, or how much they spend on activities such as eating out each month. You can keep your receipts and use them as a guide. Knowing exactly how much you are spending in all aspects of your life can help with budgeting. You can also view your statements online via your chosen bank, which can help you keep track of your spending. A new modern example of a banking “app” is Monzo. Monzo will send you a notification on your phone each time the card is used (to get started all you need to do is put some cash on your Monzo card). You can also clearly see within the app interface itself exactly where you have spent your money and when.
Consider Debt Consolidation
This tip isn’t for everyone and it is important to understand fully the aspects of debt consolidation and what exactly the process entails. In a nutshell: with debt consolidation you take out a large loan to pay off several or many smaller loans, such as credit cards, overdrafts and store cards. The idea is to reduce your overall monthly payments whilst also reducing the number of institutions/companies that you owe money to.
Omit The Unnecessary
Some people do unfortunately waste their money on what some would call unnecessary expenses. Of course, the definition of unnecessary does vary from person to person. Here at Wizzcash, we would deem these to be such things as:
- Buying lunch each day (when a packed lunch can be cheaper and healthier)
- Buying a cup of coffee each day (when a thermos will pay for itself after two weeks)
- Buying computer games the day of release (when waiting 3 months will see the price drop)
- Buying new clothes per month and at full price (when eBay and Depop exist)
- Not buying their food shop in bulk (when this could save you a great deal each month)
The above are of course just examples, but by following them, or tips just like these, then you may save money each month whilst getting a stronger and more practical grasp over your personal finances.
Knowledge Is Power
With this tip we aim to highlight the benefit of finance management blogs and resources; the more you know about managing your finances the better you are likely to become at it. These can take the form of blogs, subscribing to email newsletters, keeping your eye on the news and following relevant outlets on social media channels. Knowledge is power.
Tips To Save Money
Once you have gotten a tighter grip on your finances, or at the very least a better understanding of personal finance management then you work in and employ some money saving tips. The following are a few of our favourite money saving tips:
Coupons And Vouchers
Coupons and vouchers are offered consistently by supermarkets, online stores and other companies. Offers such as “buy 1 get 1 free” and “save 10% off your order” are common. Keep your eyes peeled for the best ones that are likely to save you the most money – these are available online and in magazines and newspapers so it is good to check all of these sources. As a further point, you could follow your favourite and/or most used retailers and companies on social media as many will post about their latest deals, offers and vouchers. Furthermore, supermarkets will sometimes off an “X amount off your first shop” offer. So, if you prefer to do your food shopping online, make sure you are aware of which supermarkets are running these offers. Companies such as Latest Free Stuff are a viable place to start collecting and making use of online coupons/offers.
If you have never switched energy or broadband supplier then the chances are you could be paying too much for your bills. Sites like Uswitch now make switching suppliers simpler (plus the onus is now on the supplier to whom you would like to switch to handle the switch itself). You could save yourself a potentially large amount of money each month by switching suppliers; if you do decide to switch you should choose the greatest overall saving and attempt to resist the Amazon gift card/prepaid debit card special offer allure. Remember that you can also switch car insurance and home insurance suppliers, for example. You could make a note of the renewal date in your dairy so that you are ready and prepared to switch to a cheaper supplier should this be an option to you.
Cut Your Monthly Direct Debit Spending
This may be easier said than done if you are tied into year-long contracts. However, if you are not tied down and can cancel some direct debits then you can potentially save yourself sizeable amounts whilst adding to your monthly available spend. For example:
- If you do not watch live TV, do you really need to pay for a TV license? (£154.50/12) The same applies for Netflix, Amazon Prime and Now TV, if you do not use them, consider cancelling them.
- Are you on a pay as you go or a pay monthly contract gym contract and never use it? Consider cancelling this as well.
The best practice regarding direct debit management is to go through them each month and consider cancelling those that relate to services that you don’t use. Though you should inform the institution/provide the appropriate notice before you cancel with your bank.
We hope that you have found the information enclosed within this guide useful, and that you have learned more about personal finance management and the benefits, including some tips regarding saving money that could serve you well in the future.
At Wizzcash, we are a payday loan lender as well as a provider of short-term loans. If you would like to learn more about us then you can do so by checking out our about us page, alternatively, if you would like to learn more about payday loans and how they may be of assistance to you during times of financial hardship then please do so here.