Debt continues to grow and the money flow doesn’t seem to rise in time. Especially at this time of year we have additional financial stress we can never seem to prepare for. When worrying about other aspects of your life you may find it difficult to focus on your finances and let them build up. Here we have 6 strategies to help reduce the financial stress this holiday.
1. Budgeting
The simplest strategy but always a forgotten one. Budgeting is the best tool to help you stop worrying about money. This allows you to choose how and when you spend your money and also allows you to plan for savings. Usually the first few months of budgeting are the toughest as you adjust your spending. Try and keep note of your ingoing and outgoing so you know where and when you are spending your money. This will allow you to see when changes can be made to further save you money.
2. Emergency Funds
We all know the stress of unexpected expenses and emergencies. Sometimes a broken washing machine or car bill can take you by surprise and leave you in financial distress. If you start adding money month by month into an emergency fund to cover these emergencies it will become a lot easier and less stressful to deal with. Start with £100.00 from your paycheck and any money left at the end of the month add to this fund. It’s ideal to have at least £1000.00 always in this account to help cover the bulk of any surprise expenses.
3. Ask for the right help
If you are seriously struggling keeping control of your budget and spending then it may be best to consult a financial planner to help you create a long term investment strategy that will benefit you in retirement. It is important to keep in mind you are not alone with your financial troubles and there are companies that offer help and advice. Credit counselling services are on hand to help talk you through budgeting and other questions you may have about your personal finances.
4. Cut Expenses
When you are budgeting you will start to see where you waste some of your spending on unnecessary things. Look at options you have for travelling and if you can save more money by walking or cut back on taxi spending. Look at the amount spent on food shopping and food waste in your household. Try planning better for your meals that week and only buy the essential ingredients. Just because you are cutting down on your spending doesn’t mean your social life will suffer. Try activities that don’t cost as much. Instead of spending a lot of money on a dinner out try cooking for your friends and family. Very cost effective and a good way to spend quality time with your loved ones.
