Whatever the current circumstances, there comes a time when you will need to review your personal financial circumstances. This is usually driven by a change in personal circumstances which may warrant making a huge financial commitment. The following provides ways in which adopting the following changes can make you better prepared no matter what you are faced with. In so doing you will need to ask yourself the following questions and be honest
1. How much money do you save each month?
About 50% of the population do not save regularly. Savings is important not just for unexpected bills such as repairs or accidents and unforeseen events.
Start by opening a savings account and it does not matter how little the interest may be but get into the habit of a monthly payment into this account. Subsequently you can then consider other options such as the Individual Savings Account (ISA with a tax free savings up to £5,100 per year)
2. How Often Do You Check Your Bank Statement?
It is quite easy to lose and waste money by forgetting to cancel payments from your account – magazine subscriptions, gym memberships etc – Make it practice to check on what you are spending and where your money is going. No matter how small, such could boost your bank balance
Cutting daily expensive brunches meals and setting yourself a weekly cash budget is a good way to cut spending.
3. Who Do You Seek Counsel – Financial Advice
A large percentage of us on occasion get into a muddle with money matters. As it stands each person has their own unique pattern regarding their personal financial crcumstances. Thus it follows that for those who are not confident in handling their financial affairs thoroughly research and seek wise council.
4. How Do You Currently Pay Your Bills?
Be organised when it comes to your financial commitments in line with bills debts and expenses. Leaving bills unpaid or not paid in a timely manner can lead to penalties debt and a poor credit record. As such for those who are not confident about beign organised then you will find that most companies have a standing order or direct debit – which in itself could lead to a savings of up to £200.00 per year as the direct debit mode of payment is incentivised
5. Do You Require Cash To Tide You Over Till Pay Day – What Can You Do?
Usually the apparent cheapest short term loan is an overdraft facility approved by your bank. Furthermore, you could consider such loans from a friend relative or even your place of work. But note, you must exhibit discipline in whatever route you decide to take.
If all else fails you might consider withdrawing cash from you credit card – always make sure that this is a last result and not a convenient route.
6. What Interest Do You Pay On Your Credit Card?
It is important that you are conversant with the interest rate charged by the credit card company you are with. Assuming that you have debts to clear, then secure the lowest interest rate and pay off as much as you can before any introductory period ends and the rate increases.
If you clear your card every month, forget rates and make the most of cash back credit cards with credit that pay you when you spend with them, or those offering rewards
Note: Do not confuse store cards with credit cards which apparently charge large rates of interest – up to 30% compared to the average credit card rates of 18%.
7. Do You Buy Car and Home Insurance Together?
It is often wise to take multiple policies form the same provider and more often than not they will provide you with a discount. You can do so by comparing and getting an insight as to what you are getting for your money.
It is important that you inform your provider regarding your change of circumstances. For instance,
- Getting Married – which can cut your car insurance or
- Working From Home – could also affect your contributions.
8. Do You Plan Ahead For Travel Insurance?
Being stingy with issues such as travel insurance can turn out to be expensive especially whn it comes to medical cover. The bill of and air ambulance home from say the Canries can be as much as £30,000. Always organise your travel before you go.
If you travel frequently then consider annual policies that offer the best deal. Furthermore, do not forget that such cover you can find with most packaged bank accounts which also offer additional benefits like mobile insurance and breakdown cover.
So which one are you
Have you got your head stuck in the sand regarding your cash circumstances? Do you find yourself wasting money on poor financial deals? Then it is imperative that you keep a money diary, providing you with a picture where you are probably losing or wasting money
Could you be the one with a good sense of money but you are impulsive without much knowledge of the products you choose. Then it is important that you carry out your research and exert due diligence before you take on any product or service.
You could also be on top of your cash flow and have worked out what is useful for your personal financial circumstances. However, do not remain complacent and always give yourself a regular financial health check to ensure that you are still getting the best deals.