Is Your Money Trickling Away Like Water? Now Is the Time to Spring Clean Your Money!
Do you find that you always seem to be haemorrhaging money? It might seem that no matter how hard you work, there never seems to be a surplus of money left at the end of the month.
If this sounds like you, it can leave you feeling frustrated that you can't ever get on top of your finances and have a bit of breathing space. This sort of frustration can lead to plenty of stress and worry, and if you don't tackle it can spill over into your relationships, work and sleep.
The first few spring-like days have put in an appearance in the past couple of weeks, and just as people's thoughts turn to spring cleaning around the house, this is a great opportunity for you to do the same with your finances. Having a sort out and reviewing what you're spending your money on every month can make a huge difference very quickly to your outgoings, which in turn has a great effect on your state of mind. It can be really quick to do, so why not sit down with a glass of wine, a beer or a slab of chocolate cake and give it a go?
On a spreadsheet or piece of paper create three columns. The first column is for you to make a list of everything you are committed to paying every month. These are your essential bills such as your rent or mortgage, council tax, energy bills, loan or credit card payments and any other direct debits or standing orders which go out each month.
The second list essential things you need to buy and pay for but don't have a monthly commitment payment for - just the essentials for now - such as food shopping, household expenses, petrol or public transport and any other costs.
Finally in the third column, jot down the things you don't necessarily need but regularly spend money on, such as gym memberships, going out, takeaways, coffees etc. The most vital hint here is that you have to be thorough and honest about what you spend. If you miss bits off, your total monthly spend won't be accurately represented and you won't be able to assess properly how and where you will be able to save money.
Now you'll be able to clearly see where your money is going every month, and hopefully find out why it seems as though your money is permanently trickling away like water. Which areas could you potentially save money? What could you either buy cheaper, spend less on or go without altogether for a while in order to build up some reserve funds?
A great tip is to keep a spending diary and make a note of every single time you spend anything - even if it's a pack of chewing gum. It all adds up, and you might find that you spend far more on the odd night out, that daily latte or treat when you pay for your petrol than you ever thought possible!
If this sounds like you, it can leave you feeling frustrated that you can't ever get on top of your finances and have a bit of breathing space. This sort of frustration can lead to plenty of stress and worry, and if you don't tackle it can spill over into your relationships, work and sleep.
The first few spring-like days have put in an appearance in the past couple of weeks, and just as people's thoughts turn to spring cleaning around the house, this is a great opportunity for you to do the same with your finances. Having a sort out and reviewing what you're spending your money on every month can make a huge difference very quickly to your outgoings, which in turn has a great effect on your state of mind. It can be really quick to do, so why not sit down with a glass of wine, a beer or a slab of chocolate cake and give it a go?
On a spreadsheet or piece of paper create three columns. The first column is for you to make a list of everything you are committed to paying every month. These are your essential bills such as your rent or mortgage, council tax, energy bills, loan or credit card payments and any other direct debits or standing orders which go out each month.
The second list essential things you need to buy and pay for but don't have a monthly commitment payment for - just the essentials for now - such as food shopping, household expenses, petrol or public transport and any other costs.
Finally in the third column, jot down the things you don't necessarily need but regularly spend money on, such as gym memberships, going out, takeaways, coffees etc. The most vital hint here is that you have to be thorough and honest about what you spend. If you miss bits off, your total monthly spend won't be accurately represented and you won't be able to assess properly how and where you will be able to save money.
Now you'll be able to clearly see where your money is going every month, and hopefully find out why it seems as though your money is permanently trickling away like water. Which areas could you potentially save money? What could you either buy cheaper, spend less on or go without altogether for a while in order to build up some reserve funds?
A great tip is to keep a spending diary and make a note of every single time you spend anything - even if it's a pack of chewing gum. It all adds up, and you might find that you spend far more on the odd night out, that daily latte or treat when you pay for your petrol than you ever thought possible!
