How to rejig your finances successfully

When you really begin to manage your finances and take a step back to carefully consider your financial options before making any rash decisions, you’ll find yourself developing a better relationship with money. When you can get to a stage of being proud of having well-organised finances, you can begin to enjoy financial independence, as well as benefit from peace of mind knowing you’ve got some cash stored in an emergency pot should you ever need it. If you are yet to get your finances in order, here are some tips on how you can rejig them successfully.

Create a budget and stick to it

Are you guilty of spending money on a Costa coffee every day? Or perhaps you are more likely to order from Deliveroo rather than cook yourself a nutritious meal from scratch in the evenings? When it comes to organising your finances, one of the key things you must do is create a budget for the month – and stick to it.

First, calculate your income and expenditure. From there, create a breakdown of the things you need to spend, want to spend, and want to save. After all your outgoings, set yourself a limit of how much you can afford to spend on the luxuries, and make sure you don’t go over it. Put the rest of it into a pot so that you’ve got some funds for a rainy day.

Pay your bills on time

One of the easiest ways to pay your bills on time is by setting up a direct debit – that way, the money will come out of your account every month without you having to do anything. By paying for everything in a timely manner, you will also be helping to build your credit score, which could come in very handy in the future when you want to buy a car or a house, for example. If you have a credit card, ensure that you keep the balance low and pay it off regularly.

Make savings non-negotiable

No matter whether you have got your eye on a shiny new pair of shoes, some state-of-the-art appliances, or a week-long break in the sun, you’re going to need some money that has been put aside to pay for it. Instead of spending your disposable income on everyday things that you don’t need – i.e. that takeaway coffee – be serious about organising your finances and make your savings a non-negotiable expense.