6 ways to improve your financial situation
Getting on top of your finances doesn’t have to be difficult – a well-designed plan and a couple of small lifestyle changes can go a long way.
It can be easy to feel like you’re losing control of your finances, which can have a massive effect on your day-to-day life. Below are our six tips to get you back in control. Remember, if you need additional support, there is plenty of free debt advice available to you.
1. Budgeting
The best place to start is with your budget. It’s useful to know how much money you have coming in, how much you are spending, what you are spending your money on, and how much money you have left after expenses. Building a budget has many benefits and it’s a great way to make sure that you get your spending under control.
2. Ready, set, goal
Losing control of your finances can make you feel like you have no sense of direction or achievement. It could be because you haven’t yet thought about what you want from life and setting yourself realistic goals. Having a clear goal in mind can give you the motivation you need to help you improve your position or get to where you want to be.
When you are setting your goals, it’s crucial that you make sure they’re attainable. Many of us want things to improve quickly, and because of this we may put tough targets on ourselves – which if they are not met might lead to you feeling disappointed.
It's better to break your goals into smaller objectives and celebrate each milestone.
.
3. Right state of mind
Thinking positively can have a big impact on your wellbeing. Many of us have had periods of where we have felt a little low and deflated, and this can affect all parts of your life. According to Mind, your mental health can affect the way you deal with money - that’s why finding practical ways to boost your mood and feel more optimistic is important. Try going outside for a daily walk. The fresh air and exercise are good for your mind and your body.
If you’re struggling, please remember there is support available! Mind are a charity that helps people who are struggling with their mental health.
4. Identify needs and wants
When assessing your financial situation, it’s useful to understand what you need and what you want. Differentiating between the two can help you decide where you can reduce your spending to improve your finances. It may be wise to prioritise bills and utilities over luxury goods.
Many of us are prone to accumulating subscriptions for services or purchase items that we might not need. Although these might not be big money expenses, you’d be surprised how lots of small purchases can add up to large sums of money – saving on a few of these could help give you that extra bit of cash that you might need.
Everyone should treat themselves every once and a while, but keeping some money back for necessities, bills, and unforeseen expenses will improve your finances. If you are wondering how you could reduce your spend, read PayPlan’s advice on how to reduce your spending.
5. Saving on worries
Most people are hit with an unforeseen expense from time-to-time, and it can make you feel a little uneasy, especially if you don’t have much money behind you. Where you can, try building some savings so you have money to fall back on; it’ll give you added reassurance and confidence in your day-to-day life.
A useful activity to set yourself is the 1p savings challenge. Over a course of a year save one penny on the first day, 2p on the second day, 3p on the third and so on. After 365 days you’d end up with savings of over £650. It’s a method to help you constantly think about saving money, and after a while it’ll become second nature.
.
6. Clearing off outstanding debts
Paying off your debts will give you more money for yourself along with many other benefits. By clearing your debts, you can focus your money on the things that are important to you, allowing you the flexibility to choose where to direct your money while potentially providing yourself the opportunity to improve your financial health.
If you’re a Cabot Customer, we provide different options to help you clear your debt as quickly and efficiently as possible. You can use our budget planner to help you create an affordable repayment plan over a period, or you can make a quick payment to pay off your debt faster.
Get in touch with us
We are here to help you financially recover - our friendly team will be able to find an arrangement that is right for you. We will never ask for you to pay more than what you can afford. Check out our customer testimonials to see the journeys that some of our customers have had.
Find out more about how flexible we can be, get in touch with us today.
