The holidays are coming to an end and money has been spent on your loved ones along with a plethora of drinks and food. Now is the time to get your finances back in shape to move into the New Year with clarity on where you and your personal finances stand. Here are 5 ways to recover.
- Go Through Your Statements Instead of checking your bank balance and accepting the current balance you see, check your statements and ensure that every charge you see is familiar to you. Query anything that looks peculiar to you and look into it. Check what direct debits have already come out and make a mental note of any other bills you are expecting so you can decide how you are going to budget the money you have remaining.
- Start Tackling Debt
If you have any lingering debt it’s time to start thinking about how you are going to deal with it to ensure it doesn’t follow you into 2018. Write down a total of your debts no matter how hard it may be and create a plan to reduce these debts. It may be easier for you to deal with one debt at a time or you may decide to consolidate your debts. Choose the option that currently works best for you and stick to it. Whether it’s an overdraft, credit card, loan or any type of debt, face it head on and make the necessary steps needed to become debt free.
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- Start Tracking Your Spending
If you go month to month with no idea how much you are spending you may experience feelings of anxiety when an unexpected expense comes up. There are so many apps that now help you track your spending such as Money Dashboard, Loot or Moneyhub. These apps can help you access all of your accounts in one secure place and some of them even show you what your current net worth is.
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- Review Your Current Outgoings
A way to cut down on costs in the New Year is to analyse all the things you pay for on a regular basis and see if you can cut down in certain areas. Whether it’s a phone bill, paying for TV online or paying for a music streaming service, it’s worth deciding what memberships you could cancel. Some services offer you a discounted rate if you decide to cancel so even if you’re not 100% sure on if you want to cancel the service right away.
- Get Serious About Your Savings
From dipping into your savings regularly to only saving what you have leftover, it’s time to get serious about your savings and your savings goals. If you don’t have any savings goals, make some so you have something you can work towards financially. Even deciding to save £3000 is a goal. Once you have goals in place be sure to make your goals a priority. It is very easy to think that paying your rent and bills are more important than saving, however, saving every month is just as important. Be sure to pay yourself each month, even if it’s 10% and work your way up from there.
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This post was written by Bola.