Whether we like it or not there is no getting away from the fat that money will inevitably feature prominently in our lives. This, fact alone, combined with the extremely difficult economic conditions that currently prevail, means its more important than it has ever been to be up to date and educated on money issues.The more we know about money the easier it is to avoid some of the financial pitfalls that trap the unwary.
It is for instance important to get into the habit of budgeting with your finances. This doesn’t need to be anything very formal, it simply means you learn to become more aware of what you are bringing in each month and how you are spending it, so that hopefully you can make some small adjustments to your spending habits which over time will amount to a significant improvement in your finances.
To be effective, you need to be completely honest so that you take into account even the smallest little items. After all, a few small direct debit payment each month may be pretty insignificant in themselves, but accrued together over the space of a year they can mount up. The golden rule is to arrive at a situation where, as Mr Micawber might have said, your income is greater than your expenditure.
If you find on closer examination that your outlays are really mounting up and leaving little room for manoeuvre, then you will need to carefully examine each of your regular payment to see where economies can be made. What about that gym membership you seldom use? Or that TV subscription you never really take advantage of? If things are tight, cut out anything you don’t really use, need or want, and you will soon see the pressure on your budget easing.
Then there are the payments you make on essentials like gas, electricity and other utilities like broadband. Shop around and make savings here where you can. It all adds up in the end.