How to beat the credit crunch
If you have noticed that your money isn’t going as far as it used to, even compared to a few months ago, you aren’t alone. The current state of the economy means that prices are rising and income is largely staying the same, which isn’t good news when it comes to making ends meet.
But is there anything you can do about it?
Luckily there is – and it means being smart about what you do with your money and how you manage it on a daily basis. Saving a small amount of money on a daily basis might not seem like a lot, but when you add it up over the course of a month you might be surprised at the results!
This is the key to battling rising prices. You may not win every battle and the gains you make may only be small ones, but when they are added together they can make a difference.
The problem is, we all waste money to a certain extent. We’ve all been out shopping and spotted something we’d love to buy… and then we’ve bought it and decided we’d worry about how to pay for it later. That’s the worst way to battle the credit crunch, because money that you didn’t need to spend could have contributed towards paying essential bills or ideally put in a savings account to act as a cushion against future rises in prices.
Budgeting will of course help you to combat unnecessary spending, but the best skill you can have on your side is to identify how you behave with money, and learn new and positive habits to make sure you can take positive action against the credit crunch.
Take a look at your outgoing bills each month as well. Gas and electricity prices are going up, but you can combat them by switching to a new supplier if you find a better deal. The same goes for every other household bill, including your mortgage. The time you spend searching for better deals will be worth it when you reduce your outgoings from the amount you are currently paying.
Make sure you look at every aspect of your monetary situation as well. If you have a car there isn’t a lot you can do to reduce your car tax, unless perhaps you get a smaller car; but you might be able to reduce your car insurance by shopping around. If you have access to the internet you will usually be able to get a lot of services cheaper simply by booking them or arranging them online.
And don’t forget your credit cards either. If you are paying a high interest rate it might be beneficial to try and move your balance to another card altogether – it can save you more in the long run.
But whatever you do, make sure you keep an eye on your finances as being in the know is the best way to stay in control of them during tough times.
Paul McIndoe writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
