Laying healthy financial foundations for the future
Wouldn’t it be great if we could snap our fingers and have our finances all sorted? Unfortunately, life doesn’t work that way but laying healthy financial foundations doesn’t have to be excessively time consuming or too much work. Creating a solid financial foundation is all about making small positive decisions consistently, which work to place you and your family’s personal finances on the right path.
It’s never too late to start making positive changes in your personal finances. We’ve put together a few hints and tips for you to start laying a healthy financial foundation that will remain solid in years to come.
1. Start small
Ask yourself what areas you can free up cash and create margin in your monthly finances. Can you forego those takeaway coffees on the way to work and put that money aside instead? Can you spare 10 minutes each morning to make your own lunch instead of buying it every day? Making small incremental changes can help create margin easily and effectively.
2. Evaluate expenditure
Going through your monthly and even yearly spending is a tedious task but it can be a huge help when it comes to evaluating exactly where your money is going and planning accordingly. When you know how much you need every month to cover the essentials, it allows you to have more control over how the rest of your hard-earned cash is used.
3. Decrease debt
If you have debt, allocating some of your monthly finances towards paying it off can be a great start in laying a healthy financial foundation. Start by slowly paying off one credit card. Once you have paid that card off, use the money set aside for paying off the debt to pay off another card if you have one. Once all your cards are paid off, don’t be tempted to spend the chunk of money you set aside. Why not direct that money into your savings instead?
4. Store up savings
One of our greatest objectives at TWiCE is to create a savings culture. We encourage you to be proactive and determined to be a saver. That isn’t to say you need to put hundreds of pounds a month away in savings, because sometimes that isn’t very realistic. But make sure that you are putting some money in savings each month, even if it’s just one pound. The amounts will start to add up and grow as you become more comfortable with planning your months ahead and implementing small changes.
We believe you can do it and are also here to support you along the way. Sign up here to receive Fortnightly Insights and Money Stories for hints and tips on personal finance.
Disclaimer: The above information does not replace financial advice. Please ensure you seek independent financial advice before making any decisions regarding your finances. We also recommend that you carry out your own research to ensure that this is right for your own unique circumstances. Please note that we sometimes link to other websites but we cannot be held responsible for their content.