20 October 2020

How to have better money habits

By ruiiid5

The toughest part of saving money is getting started. It doesn’t have to be hard or complicated if you create a simple strategy to save for both short term and long term goals.

  1. Note down your expenses

Keeping track of what you spend your money on each month is a really useful exercise. That includes everything, from coffee to energy bills. Once you have the figures for a month, organise the amounts into categories such as food, fuel and bills. Try to include absolutely everything. This will provide an overview of your income and expenditure, making it easier to see straight away any overspending and areas where savings can be made.

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  1. Reduce overspending

We are all guilty of forgetting to cancel subscriptions or memberships, especially those that auto renew. Are you spending too much on eating out? Before making non-essential purchases, give yourself a few days like a cooling period. If you still want it, think of ways to save for it.

  1. Set realistic goals

Goals are a useful tool for motivating you to save a little each month. If you are setting a goal for retirement or education, consider putting that money into an investment account. Get help from Accountants Gloucester at Gloucester Accountants Randall and Payne.

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  1. Decide what your priorities are

Once your essential expenditure is taken care of, your goals will have the biggest impact on your savings. For multiple goals, be sure to prioritise and avoid neglecting long term goals for shorter term needs.