As the New Year eases in, many of us turn our attention to money. The start of 2022 is the perfect time to look at your current financial strategy and think about where you could improve. Whether you are struggling to secure a decent income or you want to do more with your savings, this post is for you.
At any stage of your career, it’s important to have a solid grasp on your financial outlook. Many people fall into the habit of earning, paying and saving whatever’s left over. Their safety nets are more of an afterthought, so they may not even be aware how much they’ve put away at all.
With public debt continuing to rise, many people found themselves personally struggling to make ends meet as a result of COVID-19. The pandemic’s impact on the UK economy continues to unfold in 2022, filling many with anxiety over the uncertainty. That makes budgeting and building up your own finances all the more important. If you’re ready to start this new year off right, read on to discover tips for improving your finances in 2022.
THINK ABOUT INVESTMENTS
Trading can help you begin to build a stronger financial portfolio. Having that level of security can promote greater personal confidence as well as more informed financial decisions. There are many options when it comes to the financial markets. Whatever your goals, budget and experience level may be, there is a form of trading that might be profitable for you.
AVOID RELYING ON CREDIT
UK credit card debt reached its highest level for a year in November 2021, despite the apparent savings made due to lockdown.
During financial difficulties, credit cards can be a beacon of hope. But they can also quickly draw you into a troubling cycle that feels impossible to break out of. If you do decide to incorporate credit into your budget, make sure it only comprises a part of it. Moreover, focus on using credit cards with intention over impulse. Those late night online shopping sprees never do any good, least of all for your bank account.
PRIORITISE LONG-TERM SECURITY
With the outcome of the pandemic still so largely unpredictable, people need peace of mind. While it’s important to have a roof over your head and food on the table, your household has bigger concerns, too. By building a strong savings now, you can feel less paranoid about what will happen if someone gets sick or members of your family lose their jobs.
Saving doesn’t have to be a chore, either. In fact, why not make a game out of it? Draw a jar on a piece of paper, and write your monthly saving’s goal at the top. Whenever you say no to a purchase or manage to put something away, fill up the jar a little. Watching these jars fill up each month can motivate you even more to put savings first in your financial planning.
USE A DEDICATED SAVING APP
Speaking of which…
You can use a pencil and piece of paper to create a workable budget, sure, and transfer that 10% out of your account as and when you see fit, but digital solutions are often a much more efficient way to manage your budget and savings.
With the right app, for example, you can create a viable budget and automatically link your spending to your profile to minimise the amount of work required to keep on top of your finances.
Budgeting apps are a great way to stay in control of your spending and get a deeper insight into your money management skills. As well as helping you to cleverly put money away for your next big purchase, they can also help you to enhance your saving skills and make savvier financial decisions.
Some of the best budgeting and saving apps currently on the market include Money Dashboard, Emma, Yolt, Bean and Plum.
For more tips, check out these 7 tips for managing money and debt during COVID-19.
*Anything written by IDEAL Magazine is not intended to constitute financial advice. Always consult with an independent financial advisor or expert before making an investment or any personal finance decisions.*