Prioritising your goals
manage your money effectively with these great tips...
- First, pay your bills. Make sure your most important expenses are covered each month - for example, rent or mortgage, utility bills & your car payment.
- Occasional costs come up quarterly or yearly. Make sure you have put money aside to finance those.
- Set aside your day-to-day need, like groceries and transportation.
- Some save money for emergencies. Unexpected situations can occur and it is helpful to have an emergency fund.
The next step in saving would be to set aside money for future goals such as buying a house, education etc.
Budget tips...
If you live with housemates open a joint account for shared bills, such as rent and utilities. Work out a monthly contribution and setup a standing order from your current account. Then you'll be sure exactly what's left for other essentials and treats.
Did you know utility bills are usually estimated? These figures are based on previous bills at your address and may not accurately reflect your usage. Ask your gas or electricity company about meter readings.
Avoid credit cards - if you have no choice, shop around the best deal. Many offer 0% time-limited deals on balance transfers and it's easy to organise, especially if you sign up with one of the internet-based providers. But don't use your new interest free balance to go mad! All credit is debt - only use it as a last resort.
Remember...store cards are evil! The discount on offer rarely justifies the extortionate interest rate. Unless you're really self-disciplined, don't be tempted!
General hints for shopping:
- Plan meals for the week ahead before you go shopping and write a shopping list to prevent too much impulse buying. Supermarket's own brands are much cheaper than the more well known brands.
- Avoid buying fresh fruit and vegetables when they are out of season as they will be much more expensive. Fruit and vegetables are a lot cheaper to buy from local markets than supermarkets.
- Try going to supermarkets shortly before they close as they will be marking down food which they will be unable to sell the next day.
- Look out for special offers, but don't buy things that you'll never eat just because it's cheap.
- When putting leftovers in the fridge or freezer make sure they have cooled down completely. Also, make sure that you reheat leftovers thoroughly before eating.
- Processed food is more expensive because you are paying to have it processed for you. It is much cheaper to buy basic ingredients and make meals yourself.
- If you can afford to bulk buy, you can save money and time by making up extra portions of food and freezing them for a later date. Not only is this a good way of saving money but when you are in a hurry, or can't be bothered to cook, it is just as good as buying ready meals. When you do this make sure you label the food with what it is and when it was frozen.
- Electricity costs more than gas, so use gas, if there is a choice (if there is a choice), as much as possible for cooking and heating.