TIPS FOR MANAGING YOUR MONEY
RBS bank manager Amy Sparks runs financial reviews for her customers. Here are her top five tips on spending less, saving more and reaching financial goals.
1 Be goal-orientated
HAVING goals with money makes you focused because you can visualise a tangible result. Getting married, buying a car or a home are examples that are better than just trying to ‘spend less’. Be specific. You can then think how to cut down your spending in a targeted way.
2 Everyday purchases really stack up
THE best way to eliminate a lot of spending is to look at what you buy nearly every day as these small purchases really add up. Coffee, food, drink or travel are all common things to re-evaluate. Cutting out just £10 of regular weekly spending adds up to more than £500 a year that can be used elsewhere.
3 Switching is worth it
A 1% to 2% difference might sound small but it can mean hundreds of pounds saved every month. So it’s worth at least doing the sums. And there are tools online to help.
4 Find spending pitfalls
WE all have different ways we like to treat ourselves – buying clothes, takeaways or going out. Don’t try to cut them out altogether, but set a budget. Control is key.
5 If you’ve never had it, you won’t miss it
A BIG expense such as your mortgage might get cheaper when you switch, but consider keeping the monthly amount you pay the same. This way, you will pay off the loan much quicker by reducing the term. Overall you’ll pay a lot less interest.
And if you’ve become accustomed to budgeting for the old amount, you’ll be used to paying it.