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When it comes to money we tend to fall into
three main categories: spend less than we earn,
spend what we earn, spend more than we earn. If
you'd like to have more money each month or want
to get control of your finances read on.
Create some good financial habits by taking a
look at where you are now. Where do you want to
be? Follow these tips to help you get there.
- Keep a money diary for a week. If you don't
know where you spend your money, you can't start
making changes. Carry a notebook with you and
write down every single penny you spend as soon
as you spend it, every day for a week ñ
every bill, standing order, newspaper, snack,
bus fare, coffee Ö At the end of the week
look at where it all went. Can you see any areas
where you could make changes?
- What is your minimum survival income? How much
do you need to pay for the basics like mortgage,
rent, insurance, bills, food and car each month?
Aim to save at least three times your monthly
survival income with easy access in case of
emergency.
- Your monthly expenditure. Work out what you
spend monthly on everything else: meals out,
entertaining, clothes, holidays, presents,
credit card repayments etc. etc. Including the
basics, compare your total outgoings with your
income. Where's the fit? Are you
overspending?
- What are any debts costing you each month? How
much do you pay in interest? What would you
rather be spending that money on? If you can
create some spare income each month can you put
it towards ëbusting' some of your debt.
Contact me for a specific debt-busting
exercise.
- Save 10% of your income. As a minimum put
aside at least 10% of your monthly salary. You
never know when you might need it. Place it
somewhere with easy access, preferably earning
interest ñ not under the mattress!
- Search around for the best deals. How often do
you check out the best deals available for
insurance, mortgage, fuel, credit cards? I've
just saved myself almost £200 on my car
insurance renewal. Check out all the brokers and
online insurance companies for the best quote.
Use cost comparison sites such as www.kelkoo.com
and www.dealtime.com. You can also save money by
switching to a different energy supplier via
sites such as www.uswitch.com.
- Talk to a Financial Advisor. While you can
learn a certain amount from newspapers,
magazines and the Internet, it's always worth
discussing your financial requirements with a
good IFA. Your bank may be a place to start -
they may not be independent but will be able to
advise you on your financial needs for your
situation depending on age, family, income and
future plans. The sooner you start the better
off you'll be.
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