How to Balance Your Wallet After the Summer Splurge
The warm weather and holidays might have led you to indulge a bit more than you planned. However, as autumn sets in, it's the perfect time to recalibrate your finances. This guide offers a roadmap to help you regain financial stability, from re-evaluating your budget to preparing for the holiday season.
Re-evaluate your budget
"A budget is about giving every pound a purpose". Awareness is the first step towards financial security. Scrutinise your income and expenditure to understand where your money goes. Categorise your spending into leisure, utilities, and dining out to identify potential savings without compromising your lifestyle.
Get rid of stealth costs
You might be surprised to learn that the typical UK citizen spends around ￡500 a year on subscription services. Mark all recurring charges on your bank statements over the last three months. Consider the usefulness of each service, whether it be an unused gym membership or an unused streaming subscription. You might significantly increase your annual savings by eliminating these undetected costs.
Participate in a "no-spend" challenge
Now that your budget is more efficient, it's time to increase your savings. Try setting aside one or two "no-spend" days each week to avoid unnecessary purchases. Choose homemade coffee, bring your own food, and think about inexpensive entertainment. This easy habit can increase your savings, while also helping you become more conscious of your spending habits.
Use your skill or unwanted items for cash
Selling goods online or making money from your skills is simpler than ever in the digital era. Think about clearing up your area and selling everything you don't need, or use your skills to land a freelance job. A rewarding approach to earn extra money could be through virtual tutoring or crafting.
Set financial goals
Whether you're saving for a holiday or a property, having a financial goal can make saving exciting. List your short-term and long-term objectives, estimate the costs, and adjust your savings plan accordingly.
Getting ready for the next holiday season
Nearly 30% of credit card users in the UK spend over ￡1,000 during the holiday season, according to Money.co.uk. To try and sidestep holiday debt, aim to save ￡8 per day starting from September. By the end of the year, you'll have amassed nearly ￡1,000.
Saving Schedule:
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Month Amount Saved
September ￡240
October ￡248
November ￡240
December ￡248
Total ￡976
Are you prepared to up your savings game?
If you are in good financial standing and want to increase your savings, think about investing. You should always consult a financial professional if you are new to investing, because it carries risk.
By taking proactive steps now, you can aim to enter the next holiday season and the new year financially secure and stress-free by taking pre-emptive measures now.
Financial advice or recommendations should not be derived from the information provided here.
Hope that helps!
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