MONEYSAVING

Money Saving Tip 1

User Rating: / 2
PoorBest 

 Unregistered users will only be able to see the first 4 tips - create a FREE account now to see them all and access the forum

CONTROL YOUR MONEY !  

If you would like take control of your finance then there is one simple method of making sure you only spend what you can afford – the piggybank method..
There are two key facts you need to understand before you start to budget properly.

  1. You can't trust your bank account.
  2. Your bank account lies.
When you check it, it only shows you a simple snap shot of the scene that day. It misses out what payments are due in or out, when direct debits are paid, when you need to do a shop. Never think that having cash in your bank account means your budget is balanced, though being overdrawn is a good indicator it isn't. Don't ask

"What's the cheapest way?" Ask "What can I afford?"

 

(Access the forum and secure parts of our site for LOADS more money saving tips and debt help articles  Create an account for FREE !)

To get back on track, the most important thing to do is to understand that your finances must lead your lifestyle, not vice-versa. Many people look for the cheapest way to do something and consider that to be Money Saving, yet actually if you're overspending it's more important to allow what you do to be driven by how much money you have, not by what you want to do.

STEP 1 : Use the Budget Planner to work out what money you have.
List down all your income & outgoings – every penny, make sure you useyour bank statements to get the figures correct – no guessing and no missing things out – if it’s a monthly cost it must get listed.You should be listing your mortgage / rent, insurances, utility bills, phone costs, food, holidays ( if you budget)



STEP 2. Use the 20 Top Tips to reduce your outgoingsYou don’t have to apply all of them, just apply as many as you can or want to, you can always come back to it and implement more tips ifyou continue to struggle.  Some of the Tips are drastic  actions such as changing jobs or house so only action those as a last resort.

 


STEP 3. Set up different bank accounts for different purposes
Now you know how much money you want to spend on different items, the aim is to make always knowing how much cash you have simple for you.  To do this, set up a number of different bank accounts, or even jam-jars in the cupboard like your Grandmother used to.  Each account or Jar should have money in it for a different purpose, so the money's effectively in little pots.  Eg. Mortgage, insurances , Council tax & Utility Bills,  Food / shopping, xmas/birthdays, holiday fund, car costs, etc When you get paid or earn the cash, have direct debits or standing orders shift the cash over to them from your main bank account within a day or so of getting paid.



This is a bit like using a piggybank, putting money in different ones for different spending. Which accounts you choose depend on your own personal priorities and spending habits. Choose whatever suits your lifestyle and makes it easier for you.  

 

What’s left over in your main account is your ‘SPENDING MONEY’  yes that’s right there might not be a lot left but if you only spend that – you won’t be getting into any more debt  and you’ll have taken control of your finances!.  If money’s still tight then look again at the 20 Top Tips and see if there are any more tips you can implement to make life easier.

 

Access the forum and secure parts of our site for LOADS more money saving tips and debt help articles  Create an account for FREE !