Get Into Good Financial Shape
Sunday, February 8, 2009 11:37
First things first, you need to be in control of how much is going in and how much is going out! Then you can look for ways to make life easier—and boost your income.
1. Create a Budget
Draw up a budget and work out where you’re spending small amounts of money often. Buying things like coffee or snacks throughout the day may not make you feel like you’re a big spender, but it all adds up. Making your own lunch and avoiding indulgent food purchases will make a real difference to the amount of cash you can put in the bank. Using up all the food you have at home helps, too.
2. Pay Off the Big Debts First
If you have credit cards, try to avoid paying only the minimum amount you owe, as this is normally barely enough to cover the interest. Focus on using your spare cash to reduce the balance on your bills, starting with the one that has the highest interest rate.
3. Get What You’re Owed
If you’re on a low income, check whether you qualify for help with your council tax or rent, and if you’re eligible for benefits. For example, if your family has a total annual income of less than 58175 pound, you may be able to claim Child Tax Credit.
4. Put a Little Aside
If you do have some spare cash after paying for essentials, try to put a little away each month towards an emergency fund. Then, if the unexpected should happen, you’ll be prepared.
5. Go Green
Cutting down on how much energy you’re using at home will not only benefit the environment but also your finances. Turning your heating down by one degree, making sure turn all the lights off when you leave a room and avoiding leaving electrical items on standby can make a real difference to the energy bills.
6. Stop Driving to Work
Try to find the cheapest possible transport option to and from work. Getting the bus, for example, may work out a lot cheaper than driving—while cycling to work costs even less.
7. Take in a Lodger
It might not seem like a hugely tempting idea, but taking in a loger will boost your income considerably. Under the Government-approved Rent a Room scheme, it’s ppossible to let a room in your house and earn some money without paying tax.
8. One Man’s Trash is Another Man’s Treasure
Try selling your unused or unwanted items. Even though you may not need that old chair any more, it might be exactly what someone else is looking for. You could try setting up a stall at a car boot sale, or use a website, which lets you put items up for auction.
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