In today’s economy, facing the cost-of-living crisis has a lot of people wishing that they could make their money stretch just a little bit further.
Rising prices and bills have injected life with more unpredictability which can be incredibly daunting, especially for those who already feel like they are living hand-to-mouth.
While it is certainly true that making an effort to scrimp and save can help, you need to have a plan if you truly want to make your money go further. This is why we have put together the following tips, so keep reading to learn more.
Address Your Debts
First things first, you cannot make your money stretch if you are already struggling under a mountain of debt. Finding yourself is deceptively easy, and often, it does snowball and spiral out of control too. If you want to make your money go further, you should first address your debts. Start by compiling a list of your debts so that you understand the scope. If you have a few larger debts, you might want to consider getting in touch with your debtors in order to negotiate better repayment terms if it is possible.
You should always make a plan to prioritise your debts; start by paying off the debt with the highest balance or interest rate first, and the debts with a lower interest rate can wait a little longer. You could also consider a form of debt consolidation. If you have a lot of debts or multiple high-interest debts, then it would make sense. Debt consolidation is when your debts are taken over by a third party and transformed into a singular repayment, often with better terms too. Of course, you won’t always be eligible for a formal debt consolidation solution, but the same principle will apply even if you use a payday loan from Sunny to consolidate your debts.
Reassess Your Budget
Next, you will need to take another look at your budget. Most people can rely on their wages appearing in the bank accounts regularly – usually monthly, although it could be weekly or fortnightly. Knowing exactly when you are going to be paid and how long this money needs to last for then informs your budgeting practices. Coming up with a budget is key to making your money go that little bit further. You may already have a budget in place, but it is still worth reassessing it.
Start by weighing up your wages against your expenses. You should be including both the non-negotiable bills like housing, utilities, insurance and food as well as the luxury items like takeaways, entertainment, et cetera. Inevitably, you should be able to identify areas where you can cut costs, perhaps you buy your lunch out too often when you could bring it from home, or you are still paying for a subscription that you have forgotten about. Either way, taking a hands-on approach to your budget can really help you to understand your incomings and outgoings more, therefore, making better decisions and allowing your money to go further.
Look for Alternatives & Better Terms
There are several forms of bills that are considered essential to modern life. There are utility bills, wi-fi and entertainment bills, insurance and even bank accounts. A lot of people have a misguided sense of loyalty to their providers, but you shouldn’t. Just because you have been with one provider doesn’t mean that you should stick with them. Don’t be afraid to shop around and look for better terms. By finding better deals, you can save money. If you like the provider that you already have, there is nothing to stop you from getting in touch with them to ask them if they are prepared to offer you better terms.
The idea of finding the best deal extends beyond swapping energy providers or looking for a better bank account. You should also do your best to make the most of any special offers, loyalty schemes or vouchers that you have. Most major supermarkets today have some form of loyalty scheme that allows you to save money on your groceries, which is worth exploring. Before you purchase anything online, it is also worth scouring the internet to see if you can find any discount codes to take advantage of. A lot of businesses also have apps which can unlock hidden deals too.
The Bottom Line
Wages have been stagnant for decades, but costs continue to soar, which has made it increasingly challenging for a lot of people to make their wages last for the duration of the month. Luckily, with a better approach to money management, you can find ways to make your money go further and develop a better mindset when it comes to your finances too. For the most part, the tips above are pretty straightforward and really come down to exercising common sense.