Get Your Finances In Order

As we move from secondary school to college, through uni or to work, there are all these extra financial things that we sort of just ‘get.’ Student loans, hire purchase cars, learning to manage our pay, creating a budget – or trying to, rent or mortgages, loans and more. 

And most of the time, we are still working it out when our babies come along and as they grow too! Suddenly we are in charge of their financial futures and our own. 

It can get complicated pretty quickly. 

With all of the best intentions in the world, you won’t have your finances looking shipshape unless you take some action to make it happen. 

So how can you clean up your finances and make sure that you know what is going on at all times?

Automation 

Most people have their bills paid by direct debit, and they never really have to place much thought into it. BUT you could have a better cash flow if all of your payments were spread carefully over the month. Most people like to have everything go out around payday. 

Go through all of your bank statements or look at your account online and see if there are more beneficial dates that your payment could go out that would keep you with a set amount in your account. 

If you have anything that isn’t automated – see if there is an option to do so. 

Debt

Many people have some type of debt in the form of student loans, mortgages, and some credit cards. However, there are millions of people struggling with more difficult debt amounts, and that can be a worrisome time. 

Often when people have debts, they tend to shy away from fixing them because they are ashamed of them. Make a list of all of the debt and the amounts, and give each company a call and offer a small repayment. 

Insurance

Depending on where you live, insurance might be compulsory, but if not, it is always a good idea to make sure you have protection over things that are important: life insurance, home, and contents insurance, and car insurance. But if you run a small business or are considering some of the best UK side hustles, getting insurance for your business is something you need to consider. 

If you already have insurance, then it is a great time for you to go through your policies and make sure that they still meet your requirements. Get some free quotes and check comparison websites to make sure you get the best detail available to you. 

Papers

Although having everything digitally makes it easy to access, it doesn’t mean that you can’t lose that access. Forgetting passwords, losing the number that the account is attached to, and so much more means that you might not be able to get the information that you really need. 

Get a folder, and collect all of your paper documents. Arrange them in an order that makes sense to you, and then label the tabs. Having everything in a neat file will mean that if you lose digital access or simply just don’t want to rely on technology – everything is at your fingertips. 

This is also a good way to be able to provide copies of these documents at short notice if you need to. 

Another reason it is a good idea to have all of your paperwork in a well-labelled file is that if anything should happen to you and/or any partner – people have access to the information they need. 

Regularly review

The thing about finances is that they are constantly changing; sometimes inflation happens, gas prices and the price for a loaf of bread go up. Salary changes with job switches or losses – a lot of things can happen. 

Even if nothing drastic happens, if you have been increasing your income and changing how you save, it is good to review your finances every six months or so. This will help you highlight if your budget is working if you need to make adjustments. 

If you set the date in your calendar and block the time out, you will make sure that you stay on track. 

At these reviews, you can also set goals that you want to reach with your finances, saving plans, debt reduction goals, and even investment goals. 

You can also see anywhere that you can cut back – unused gym memberships, too many streaming services – or a takeaway too many. 

If saving is on your mind, then here are some great ways to increase your rainy day pot: Four Family-Friendly Money-Saving Tips For 2021 – Five Little Doves.