After the past few years and the economic problems caused by the coronavirus pandemic, many people are looking for ways to handle their financial issues in 2021. Whether you need to save money or find a way to pay off debts, we are here to help. In this blog post, we will detail various ways to battle financial issues in 2021, but if you find that you need more help, please seek support from the Money Advice Service.
1. Start Budgeting
It may be obvious, but if you are struggling with your finances, then you may need to create a budget. This plan should look at how much you earn and spend each month, giving you a document that shows all the areas where you could make improvements. Start by writing down your income and regular expenses, then subtract the expenses from your income to determine your discretionary spending. Track your spending over the course of the month, and at the end of the month, you will be able to check whether you stuck to the budget.
2. Seek Financial Support To Cover Gaps In Your Cash Flow
If you have completed your budget and spotted potential gaps in your finances, you may want to consider seeking support or financial products to help. This could include funds from a credit union, an overdraft from your bank, a 0% credit card, or a loan to aid with cash gaps. If you would like more information about short term loans, please click here.
3. Reduce Your Monthly Bills
One of the easiest things you can do to take control of your finances is to cut your monthly expenses. There are some things that you may not be able to reduce, such as rent or car repayments, but there are certain bills that you may be able to improve, such as utilities or insurance. Use online comparison tools to find providers that offer cheaper deals and consider switching. You should also take a flexible and frugal approach to clothes shopping or entertainment to improve in any way you can.
4. Plan A Monthly Menu
As well as making a monthly budget, you should try to make a monthly menu that keeps you within that budget and reduces the number of times you eat out. This will also allow you to cook meals in batches and reduce your overall food waste. There are plenty of websites available to help you create plans, plus lots of existing budget meal plans that you can use.
5. Set Realistic Goals
Take the time to set financial goals, such as buying a house or growing your pension, but make sure that they are realistic and achievable. This will help to keep you motivated in your saving and investing. Unrealistic goals could set you up for failure and can discourage you from making the right financial moves in the future. Break the goals down into manageable steps and look at how much you would need to save each year, month, or week to reach that goal.
There are plenty more tips online to help you manage your financial issues, but if you need more help, you can contact the Money Advice Service.