The past couple of years have been really hard for so many people when it comes to their finances. With people losing their jobs or struggling to find work due to the pandemic, along with rising energy prices and shortages, it can be hard to make ends meet. However, there are some simple ways to try and get your finances back on track.

Start Saving

When you’re on a tight budget each month, it may seem almost impossible to save. However, if you can make savings on everyday bills such as energy, broadband and insurance by switching suppliers, that money can be put away in a savings account. It is recommended that you save at least 10% of your income but that may seem an overwhelming amount at first. ANYTHING is better than nothing. Even starting with a small amount of change can get you on your way to reaching your savings goals.

One way of guaranteeing you are always putting at least something away is to treat the savings like a bill. Set up a standing order for the minimum amount you can afford each month. That way you’ll know at least something is going to be saved each month. There’s nothing stopping you from adding to it if you feel you can spare it.

Consolidate Debt

If you’re struggling to get a grip on your debt, there is something you can do to stop it from spiralling out of control. If you have multiple sources of debt, it may be beneficial to consolidate it. If you’re paying high-interest rates on credit cards, loans and/or store cards, consolidating the debt into one easy payment may not only give you peace of mind but could also save you money. There are so many reputable companies that can help you do this if you’re feeling overwhelmed. Click here to find out more.

Create a Spreadsheet

We personally find a financial spreadsheet so helpful in helping us organise our money. We have a list of all outgoings ordered by the date they are due out. This includes all bills, standing orders, savings and money for things such as the kids’ school meals. We also set ourselves a certain amount for food, petrol and any other things coming up that month. We can then easily see what money is left over when all the essentials have come out. Going through the payments on online banking to make the list can also make you see just how much you might be spending on non-essentials. We totalled up how much we spent on things like takeaways for example, and we were horrified! It encouraged us to create a meal plan and stick to it so we wouldn’t be tempted to order a takeaway.

This isn’t to say that all non-essential spending should be stopped altogether, but it is good to see how much money could be saved or put towards paying off any outstanding debts.

Conclusion

Every individual’s financial situation is different and you have to do what is right for you, be that saving a bit more, or having a plan to pay off any debt. These are just a few steps you could take to help turn your finances around.

This is a collaborative post.