Money may not be everything, but if you don’t have enough of it or are bad at managing it, then you are going to suffer. Money problems can cause a whole range of personal issues. First, you will become stressed, and this can damage your physical and mental health in many ways. Financial issues can damage your relationships, they can cause you to make bad decisions, and they may mean you may have to make hard choices like whether to eat or heat your home. There are so many negative consequences of being bad with money that it is impossible to list them here. The good news is, though, that it is not necessarily how much money you earn that matters most. What really matters is how you manage your money. Although we are currently hitting hard financial times, there is a way through it for everyone. However, this does mean that you may need to make some difficult decisions. Let’s take a look at a few ways you can make the most of your money:
Seek Help
One of the first things that should be said is that if you are struggling, if you have a lot of debts, loans, credit cards, balances on accounts, etc., then it may be best if you seek professional help. Burying your head in the sand is never going to make the situation better. Until you speak to someone, you just do not know what kind of help is available. If you owe money to your energy provider, for example, the best thing you can do is discuss it with them. There may be more options than you realise. If you have a lot of money issues, why not seek help from financial advisers? A problem shared is a problem halved, and sometimes just talking about it can relieve some of that pressure. You do not have to struggle alone.
Be Realistic
A lot of people’s money woes come from trying to live a lifestyle that is just beyond their true financial reach. This can be seen in many ways, from having a state of the arc car that costs far too much each month and living in a city apartment which leaves you with next to nothing for everything else. It also means buying your weekly food shop at top-end stores instead of budget supermarkets. If you are struggling financially, maybe it is time you were honest with yourself. Are you really living within your means? Maybe it is time you made some cutbacks, having your hair coloured once every six months instead of once a month or even doing it yourself. There are many ways you can adjust your lifestyle to make it more manageable. However, the main issue here comes from your own sense of well-being. But is it really better to have debt and all that stress rather than admit that you can’t afford something?
Spending Awareness
Another big reason why people tend to overspend and end up in their overdrafts and inevitably lose money is that they are simply spending money mindlessly. It is very hard to keep track of how much you are spending at the best of times. However, with the new ease of buying things online and tapping your card at the stores, it is easier than ever. If you are one for discovering far too late that you are in your overdraft, then you need to become more financially aware. There are a few easy you can do this. If you haven’t already, download a banking app and make it part of your daily routine to see how much you have. It may be best to do this in the morning before you have a chance to spend money. If you are close to your limit, you know you shouldn’t buy that little item. You should try and avoid just popping in places, too, like corner or convenience stores. Pretty much everyone spends more than they intended to in them, and if this is a daily habit, then you can see how easy it is to waste money. Try and set a budget each week and only buy your food in the supermarket. Another way to keep track of your spending is to go to the ATM and withdraw what you want to append that week. Being able to see the money flittering out of your purse will keep you aware of your finances.
Delayed Gratification
Just because you are trying to be better with money does not mean you have to deny yourself all the things you want. In fact, this may not be the best strategy as you may end up resentful. Instead, try a little delayed gratification. Instead of seeing that beautiful handbag and impulsively buying it on credit, stop yourself. Take a picture of it and then save up for it. Saving up for it and buying with cash mean your debt has not increased. You may also feel that the initial impulse you had to buy it has gone, and you don’t want it. So, you have money to save. Saving money starts with delayed gratification, and when you start to see that bank balance rise, perhaps you will think of something better to buy with that money or even look to invest it.
Declutter
Yes, decluttering can help you make the most of your money. If you have too much stuff in your house, then decluttering and selling things is a great thing to do. There are so many benefits to decluttering, and boosting your finances is one of them. Decluttering can even add value to your home. With all the stuff you want to get rid of, you can try selling online or going to a car boot sale. There are so many options available to you. Don’t wait for everything to go rotten or lose its appeal. Sell now and bank the money.
Savings Account
If you do not know that the interest rates have recently increased, then you must be living on another planet. No, but seriously, interest rates increasing is bad news for people in debt. Mortgages, for example, are rising across the board and causing issues for some homeowners. However, what is bad for some is good for others. If you happen to have some money in your account, then you may be able to benefit from the best interest rates in years. It is definitely in your best interest to do some investigation and discover the banks that are offering the best savings accounts. You will have to decide if you want something that you can access easily or an account where the money is not accessible until the period is over. The fact of the matter is that you will save money more in an account you cannot access you will benefit from a better interest rate. There are also ISA’s to consider as well. Like anything, it helps you do your own independent research and discover an option that worlds best for you and your situation.
Investments
If you really want to make the most of your money, then you should consider investing. Investing can seem quite daunting for those who have never invested before. But once you get the hang of it, the potential earnings from investments are far superior to any savings account, even if the interest rate is higher than it has been in a long time. Investments can come in many forms from the stock market, property, bonds, collectibles, currency, and cryptocurrency, etc. Whatever food of investment appeals to you, it helps if you do a lot of research. This is important because you do not want to sign up for an investment you don’t fully understand. Another thing to bear in mind, is never to trust the sure thing. No matter how well-meaning your tip offer is, they may be mistaken or taken for a ride themselves. So, investigate. Bonds can be a great option if you have never invested before. There are government bonds and corporate bonds. Banks have bonds you can buy, for example. Bonds work by you buying a certain amount of bonds from your chosen organisation. Then you receive interest payouts throughout the term of your investment. When the investment duration ends, the bonds mature, and you get your initial investment returned. You have bonds for a fixed-term contract, and these can be anything up to as much as 30 years or more. Bonds can be good investment choices because they are relatively low risk and can whet your appetite for other types of investments. The stock exchange can be a very lucrative form of investing as long as you research your chosen investments. Property is another great way to make money. You can buy to rent out or buy cheap homes that need doing up and cash in that way. This can be particularly good if you are in the construction business and can do a lot of the renovation yourself. Just remembering that most investing requires work.