Being careless with your cash might seem like a lot of fun when you are having a great laugh with your pals in the pub every night, driving flash cars and travelling around the world, but there is a time when you want to be a bit more careful with your cash. Contrary to popular belief, actually being smart with your money does not mean that the good times have to stop rolling. If you have decided that now is the time to be clever with your cash, here are some simple steps to take:
Think about why you are splashing the cash
If you want to spend (or save!) your money wisely, it is helpful to think about why and what you are spending it on. Are you buying flashy cars to wow your friends? Do you spend a lot of money on travel because you enjoy the experience? Do you drink too much in bars and clubs because you are bored in your daily life? Knowing why you are spending will help you figure out which costs you can cut and which are worth keeping or even spending more money on – being clever with your cash does not mean being on a spending ban. Once you know what frivolities you want to keep and where you want to save, you can begin to draw up a budget.
If you have got lots of stuff from your splurging days that you no longer need, use or want, get rid. Either dispose of it responsibly, give it to a charity shop or friends and family members, or if you want to recuperate some cash to build up your savings pot, sell it. Sell your Rolex that you bought on a whim, that fourth pair of designer trainers, or those jeans that never quite fitted you properly and still have the label attached. Make space, give someone else a bargain, and get some much-needed funds back.
If you haven’t already, research the best bank accounts. These differ for everyone, depending on the amount of money coming in and out, your credit score, and what you want or need from your bank. You can also use apps such as Plum, which help you to manage your savings through social media. Doing things like skimming your bank account every day or week can bring you a few extra quid here and there and get you off on the right track.
Dump the credit cards
Ok, so don’t dump them entirely, but put them somewhere where you won’t be tempted – many people freeze them! They can be useful if you need to buy a big purchase or for emergencies, as long as you pay them off, but for day to day living and silly little investments, they can get you caught up in a web of debt if you are not careful.
Being sensible does not have to mean being dull. It means being organised and thinking a little harder before making a purchase.