When it comes to managing our finances, it can be difficult to know where to start, so here are some top tips that might help you get better organised!
Don’t feel ashamed to ask for help – we all need help at different points throughout our lives with a whole range of things, and this includes our finances. Asking for help when you are struggling financially is important, as it can be one of the first steps towards a better financial future. If you are in debt, there are different charities and organisations that are there to offer support, such as National Debtline https://nationaldebtline.org , Debt Advice Foundation https://www.debtadvicefoundation.org and Citizens Advice https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/ One of the worst things you can do if you’re struggling is to bury your head in the sand
Keep hold of any important documents in one place so that it’s easy to find things when you need them. This includes things like payslips, P60s, bills, receipts, car insurance papers, etc
Create a budget… at Red Star, we are big on budgeting, but that’s because it’s so important. Creating your own personal budget can help you reach financial goals and keep your spending under control. Budgets can help us clearly see exactly how much money we are spending, and on what, and where if possible, any spending can be reduced. Budgets can help us avoid overspending and falling into debt, and can also help us prioritise our spending to whatever is most important to us
Pay off your debt when you can afford to. If you happen to have money in savings, but also have debts charging you interest, it usually makes sense to use those savings to pay the debt, because debt tends to cost more than savings earn. However, you should always make sure that you prioritise paying essential costs first, such as rent and gas and electricity bills, as you don’t want to risk falling into debt on those things just to clear a different debt. In your budget, you should prioritise essential payments and if there is any money left over at the end, put this towards debt repayment, rather than buying non-essentials or building savings
Shop around – although it seems simple, shopping around can really save you money. This includes choosing a broadband or energy provider, looking at different car insurance providers rather than auto-renewing, picking own-brand items at the supermarket rather than branded products, and basically any situation where you have a choice in who to buy a product or service from
Set up an emergency fund for any unexpected expenses. If you have money left over in your budget, it can be a good idea to set up a safety net of savings. This means that if any unexpected costs turn up, or if you have an unexpected change in circumstances, such as losing your job, some of the pressure is taken away as you already have a pot of money to help put towards the problem