With the cost of living crisis I though I would give my top 5 money tips to all my followers. Making poor decisions regarding financial matters can lead to problems downstream. Therefore here are my top five money tips…
1. Set Credit Card limits
Have one credit card only, the only exception should be when you do a balance transfer. Don’t be tempted to keep the credit card after the balance transfer, cancel immediately. Also, your total credit card limit should be no more than your monthly take home pay. For example, if you earn £/$2,000 per month after tax, this should be your total limit.
Having multiple credit cards or too high a limit may lead to you not being able to service the debt. As always, try to pay the debt of in full every month, if not, try and pay more than the minimum.
2. Set a Mortgage Budget
You should only take out a mortgage for up to three times your earnings, or if you have a partner, three times your joint income. Taking out a higher earning multiplier can lead to financial problems down the road.
You should also ascertain, possibly by the lender, the impact to your monthly payments if interest rates were to increase by 2-3%. Are you comfortable with the increased monthly payments?
3. Pay Bills Immediately
When you get paid, ensure you pay all your bills immediately. Ensure all direct debits and bills are paid on the same day or next day after your pay date. This will allow you to get a clearer picture of how much money you have left over for the remaining month, and you can then budget based on that. By doing this, it will stop the illusion that you have more money available to spend that month, as there will be less funds in your account.
4. Avoid Eating Out
Instead of eating out in an expensive restaurant, consider putting some time into home cooking or ordering a take-away and eating in the home. When eating out, for a family, you can spend well over £/$100 on a meal. You will find that if you buy good quality produce at the grocery store or getting a takeaway is 70% cheaper than eating out. With the money you saved, this can go towards other more valuable things such as your savings or investments.
You can even join ‘Honey‘ and get cashback for your takeaways online.
5. Get a side hustle
Having an extra source of income can really help your finances. Getting an extra pay day if you are struggling each month can help you achieve your financial goals.
It may be selling on eBay, a part time job or an online business. Just find out what suits you. Why not have a read at my iGaming affiliate side hustle, or find out more about being a Freelancer.
My Top 5 Money Tips Conclusion
Everyone’s financial circumstances are unique, these 5 money tips are just some basic financial tips and not financial advice. Remember there are organisations out there that can offer professional financial advice or debt issues, such as ‘Money Helper‘ and ‘Citizens Advice‘.