How To Detox Your Finances
January is often the time of people making resolutions, some more realistic than others. Unfortunately, it can also be a difficult time as the period after Christmas can be a tricky one financially. Fortunately, just like your body, it is possible to find ways to detox your finances.
Work out a budget
This may sound like an obvious thing to do, but it’s also an easy one to slip up on. It’s easy to get tempted by a snack near the counter or an impulse buy because it’s “on sale.”
Working out a budget can also be a good way of making you see what you are spending and help you cut out things you don’t need to spend money on.
Another aspect of this is having an emergency fund. Putting away a small amount per month can help prepare you for anything that may occur in the future (boiler breaking down, car repairs, and so forth). ISAs are also an option, allowing you to save money tax free.
Check your account
Do you know what is coming in or going out of your account? For example, it maybe you signed up for a streaming service, did the free trial, but then forgot to cancel it. It is also worth comparing options available, as it may be that there are better deals on your account elsewhere (the same goes for phone bills, energy costs, etc.).
Look up your credit score
A big factor that can affect you is your credit score. In some cases, it may be that a mistake on the report is negatively affecting your ability to get loans, better rate mortgages, and so forth. Knowing your score will also you to address any issues to help you improve it, such as adding yourself to the electoral roll.
Another possible option is debt consolidation, allowing you to reduce your debts to one monthly payment. Depending on the consolidation company you go with, you may also be able to reduce the amount of interest that you pay.
However, this option is not one size fits all- if you take out a consolidation loan, check the period of time you are repaying because this could result in being more expensive even with a lower rate of interest.
Over time, a savings plan that worked in one instance may not be appropriate later on. If you want to get married or have a family, there may be things you need to look at in terms of moving home, new car, and other things that may require savings elsewhere.
It can be as simple as looking at how often you buy coffee in a café or whether you use the gym membership enough to justify spending on it per month, or as big as looking at changing your mortgage or downsizing and moving to a smaller property.
At Larcomes Financial Services, we are here to help. We want you to be able to get more from your money. For more information or to discuss your financial situation in more detail, please contact us today to see how we can help you detox your finances.