If you’re experiencing financial stress, you’re not alone. Covering monthly bills is a concern for many in the UK. While the economy plays a role in this stress, there are steps you can take to better your financial position and relieve your anxiety. Today, Badger Loans outlines some of them.
Create a Budget
Budgeting is a great way to identify your resources and avoid overspending. Everyone’s budget looks a little different based on individual needs, but most contain the following categories:
- Mobile phone
- Internet
- Car insurance
- Car payment
- Rent or mortgage payment
- Groceries
- Utilities
Don’t forget to designate a small amount for entertainment, such as going to dinner or movies.
Look for Discounts
HSBC UK notes that there are many little ways to save money that add up over time. If you need some wiggle room in your budget, try these cost-saving tips:
- Make coffee at home
- Change your data plan
- Check out movies from the library
- Use coupons
- Limit how much you eat out
Set Saving Goals
Experts recommend having an emergency fund so medical expenses or car repairs won’t send you into debt. Of course, saving money can seem impossible when bills pile up. However, even small contributions to your emergency fund make a difference. To build up your fund, Money Dashboard suggests trying these savings tips:
- Pay yourself first
- Set realistic goals
- Stick to your plan
Make a Plan for Debt Repayment
Most adults have debt, and it’s not necessarily a bad thing. However, it’s important to have a handle on your debt-to-income ratio so that you can make any necessary adjustments to your spending. From there, paying monthly on a small amount of debt can boost your credit score as long as you’re on time. However, short-term lending, such as hard money loans, or high-interest credit cards, can add to your stress, so it’s a good idea to pay them off as soon as possible.
Tackling debt can be overwhelming, especially if the total is high. However, small steps can help you chip away at that mountain:
- Put a section for debt payment in your budget
- Choose a debt payment strategy
- Consolidate your debt
- Look for forgiveness options
Celebrate Your Successes
Being frugal doesn’t mean you can’t have fun. When you achieve a financial goal, reward yourself in a responsible way.
- Get a new board game
- Purchase a subscription box
- Make your favorite meal
- Take a bubble bath
Take Care of Yourself
Working hard to achieve financial stability is a worthy pursuit, but spreading yourself too thin can lead to burnout. Make sure you take care of your emotional, physical, and spiritual needs so you have the energy to reach your goals. Self-care takes many forms, and you should pursue what makes you feel relaxed and refreshed. If you’re not sure where to start, the following are great activities to try:
- Spend time with loved ones
- Go outside
- Dance, run, or otherwise move in joyful ways
- Set healthy boundaries
Managing finances can get stressful, but patience and a solid plan can make a huge difference. Be diligent in your efforts, and don’t forget to celebrate your triumphs. In time, you’ll reach your goals.
Badger Loans helps people gain access to a wide range of unsecured personal loans for both the good credit and subprime markets. Reach out to us today for more information!
Author
Joyce Wilson
