1. Don't spend more than you make
This might be self-explanatory when it comes to stretching your finances however, it is one that many people struggle with day-to-day. Research by Asda income tracker demonstrates how 1 in 5 UK households now have a negative disposable income.
2. Avoid unnecessary fees
By avoiding unnecessary fees such as late fees or paying the minimum amount towards your credit card means you aren’t having to waste money on things that are preventable. After a while and if you continue to pay these fees, the sum adds up over time and could lead to masses of your money being spent on unnecessary expenses. Make sure to be clued up on what these fees entail and how you can avoid them.
3. Focus on necessities, not luxuries
It’s easy to get sucked into buying the newest gadget or most aesthetically pleasing item however, these items can also cause a massive dent in our bank accounts and leave you short. Whilst it is good to treat yourself every so often, it is good to weigh up whether purchasing that item is necessary. One rule I’ve learnt to implement is the 1 week rule. If you like an item, wait a week and see if you still want it. If the answer is no, then you prevent yourself from acting impulsively (congratulations!) and if the answer is yes, then determine if you can afford it and treat yourself 💅
4. Pay yourself first
This sounds like a great idea for a blog title… ANYWAY, what we mean by this is the first thing you should be doing on payday is transferring a portion of your income into a savings account. If you are super organised (like me 😕) you separate your spending into categories so that you know what money you will be spending and how much.
5. Put some money aside for a rainy day
An emergency fund is a great way to make your money go further. It is…yes you guessed it - a fund for emergencies. Job loss, repairs, medical emergencies or even a rainy day. It’s a great idea to set aside some money that is easily accessible in case of an emergency. This makes your money last longer because you then won’t have to fork out a large sum suddenly.