Can I come out of lockdown with a better grip on my finances?
For those wanting to come out of the other end of self-isolation with a little bit more money in their pocket, or at the very least a better understanding of where their money is going each month, here are a few short tips that may just help you on your way.
Get to know your spending
Those that get a surprise when opening their bank balance should start by sitting down in front of their payslips and bank statements, and working through it all to figure out what’s going where and why. Try to consolidate all of your bills and subscriptions into one day (as close to your regular pay day as possible), and once you’ve subtracted the necessary evils, you should have a more realistic figure to set expectations and work with. Remember, the amount you see on your payslip isn’t the amount that you can splash on whatever you like.
Cut down on unnecessary spending
It’s a hard time for everyone financially at the moment, with many on a furloughed wage, and some without work entirely. However, for those that are staying at home and lucky enough to be continuing work, you may have noticed a bit of extra cash accumulating in your bank, that typically would have gone on expenses like food, travel, and drinks here and there. Reflecting on this influx of cash at the end of the month might make your realise that you spend more on pointless things that you previously may have thought, and urge you to reconsider the next time you think about splashing out.
Tip – Being stuck indoors is the best time to figure out whether you’re actually getting enough usage out of that streaming service subscription you’ve had forever, and so if you haven’t been picking up the remote enough to justify the cost, then do yourself a favour and trim the fat. That outgoing payment that you don’t even consider can add up to be quite pricey over a year or two, and the money could instead be siphoned into a saving fund or a holiday plan.
Build your financial future
Not enough of us have savings in our accounts, or money built up to last far into the future. Beyond having just an emergency pot, or rainy day fund for when the money dries up here and there, it might be time to start thinking about building a sustainable portfolio, that will last you far into the future and support you and your family for years to come.
Example – If you have the right amount of capital available, an investment in property can be a fantastic, long-term and secure investment strategy to last for a while. RWinvest is one of the many companies offering forward-thinking buy to let investment properties. A buy to let investment specifically is one that many opt for, as you can make a consistent return through rental payments. Something like this could form the basis of strong investment portfolio, and there are a ton of guides out there if you think it’s time to get started before lockdown is lifted.