Save Money

With the rise and rise of the internet, you might think that there was all the information you need out there in the ether about how to reduce your costs.  You are probably right, but it seems to us hidden in a lot of surfing and work to get at the appropriate information.

Here are the basics:

• Write down what you spend money on.
  This sounds too simple, so why don't people take this step? The magic starts to happen as you actually see what you spend money on in front of you.  You start to question whether some things are expensive, and even if you should be paying money for that particular item at all.
  To help - here is a sheet that prompts you for most common items of expense.
• Consider if some things are simply not necessary.
  Some things we spend money on are just not needed, you might be surprised to know that if all the members of a Gym club actually used their facilities, the Gym club would need to be a lot bigger.  They rely on people paying their membership, and not going.  There might be things you pay for and do not use.
• It is necessary, but when was it last reviewed?
  There will be things like your mortgage or rent which are substantial costs, but when did you last review them?  Mortgages in particular are worth reviewing so ask an Independent Financial Adviser to look at your position.
• Scrutinise general running costs.
  Ofgem, the regulator for gas and electricity, says that their mission is, "promoting choice and value for all gas and electricity customers".  Many people never analyse what they spend, trusting that the way it has always been done continues to work.  We use this company as their business model is most likely in the long term to give the best deal, in our opinion.
  
• Consider your attitudes to the things you buy.
  For example, people do like a nice car, but what is the effect on your financial life?  The motor trade knows that cars are mostly bought on emotion, and whether the monthly payment is affordable.  The cost to you is a rapidly depreciating "asset" (we call those liabilities actually) financed by debt.  Your attitudes will influence your buying decisions, the trick is to know if they improve or harm your financial position.

Need help?  Contact Us

 

Saving Money Basics

• Have a budget
• Stick to it!
• Honestly evaluate everything you spend money on.
• Ask for help.