1. Go through your finances - look at your bank statements and run through your expenditure with a fine toothcomb. Find out exactly what your outgoings are each month. List the items and the amount and be honest about the amounts (I've attached our budget planner if you don't already have it. It's FREE and will help you).
You should now have a total amount of your monthly outgoings. Did you know that 65% of people don't know how much comes out of their account every month!
2. You should have an accurate and honest total of monthly outgoings. The budget planner also asks you to input your income. Now we have a foundation to work on. We know exactly what's left or not left at the end of the month. Hopefully you haven't got too much month at the end of your money!
3. Some of you may already do this but keep your bills separate from your main bank account. So, set up separate bank accounts for your monthly bills, holiday savings, Christmas savings and yearly bills like home/car insurance, MOT, car service, TV licence etc. DONT FORGET TO SAVE FOR CHRISTMAS!
Then set up a standing order the day after pay day to those accounts, so that one account is what you use for spending and lifestyle. You know that all your bills are taken care of from the other accounts.
4. The big increases right now are in home energy, so you need to look at how much this will be. The only way to accurately find out is to speak to your utility provider, give them a call and find out the figures. I'm with Utility Warehouse, who have excellent energy rates and excellent customer service. We have an affiliation to them so if you want more details my colleague Steve can help you with this. Call or email him for more info.
For this example let's assume the average fuel bill will increase by approx £700 a year or £60 a month. Where will this money come from? You can divert money from savings each month but there's also another way.
5. Go through your bank statements and receipts and look for things that you are paying for but don't use or need. An example of this is something like TV subscriptions. Do you need Netflix, Sky and Disney channel? Is there a better value Sky subscription for what you actually watch (hint that you might be looking at alternatives like Freeview and see if you can get a discount)? Have you got a magazine subscription that you don't read anymore? How much do you spend at Costa? Do you buy a sandwich at lunch? It's these little and seemingly insignificant items that make a huge difference over the course of a year.
6. If you're going out, look for coupons that you can use in restaurants. This is about being savvy with your money not being tight with your money. There is a big difference.
7. Lastly, it's always good to talk. In my experience burying your head in the sand is not a great strategy. If you are in difficulty then please pick up the phone to us, your network of family and friends. There's also the Citizens Advice Bureau. They have a lot of information and routes of assistance that you might not have thought about.
I'd love to know if this has helped. Please email or call in to let me know.
