Simple ways to master your money in 2020
2020 is here and it’s not only a new year but a new decade. Whether you’re a lover or a hater of the resolution, it’s always a good time to sort out your finances and put yourself in the best possible place to master your money. So if that’s you, here are five easy ways you can level up your financial game!
1. Know your income and expenses
It might sound obvious, but knowing what goes into your bank account and what you spend is the first step to understanding how to improve your financial situation. Although most people know what they earn each month, many people don’t keep a close tab on what they spend and it can be quite revealing (and scary) to see where your cash goes. Remember, knowledge is power.
2. Set yourself clear goals
One of the easiest ways to stay motivated is to have clear, measurable goals to work towards - especially with money. The idea of saving is all well and good, but without tangible milestones and clear targets we often get sidetracked and feel discouraged by a lack of progress. When you set yourself a clear target, you can see the progress step by step and feel a sense of achievement.
3. Streamline your finances
Streamlining your finances might not sound like the most exciting task, but it’s one you won’t regret. For most people, it isn’t practical to have one bank account however having a clear system in place for all of your monthly expenses will ensure you can quickly identify who you pay what and when, as well as ensuring you don’t forget payments and end up paying charges. Use direct debits where you can for bills, and if you live with others, think about implementing a clear system to split joint expenses.
One of the quickest and most effective tips: unsubscribe! Set aside ten minutes to go through your last few bank statements and look out for monthly subscriptions which you forgot you had committed to. Trust me, you’ll be surprised by what you find and how many hidden things you’ve been paying for (and most likely not been getting any benefit from whatsoever).
5. Set up automatic savings
This doesn’t have to be complicated and it also doesn’t have to mean putting aside a large chunk of money each month - you can work with what you have and it’s never too early to start saving. One of the most effective ways to automatically save small amounts is using ‘pots’ which several banking apps now include. They round up all your spending to the nearest pound and stash the additional amount into a separate ‘pot’ which allows you to save without noticing.