Expended too much this Christmas? Do not worry; money maker rights expert Martyn James will walk you through everything you must know to organize your finances for 2023.
Your thoughts may be shifting to 2023, New Year’s resolutions, and starting over now that Christmas is over.
Millions of people will also be experiencing a growing sense of dread about their financial flow, whether as a result of overspending or just trying to survive the cost-of-living problem.
Many folks only engage in financial denial. Most of us, like myself, are concerned about our actual spending as compared to our income.
You’re permitted to indulge yourself, so it could be that we don’t want to see what we spent our money maker on, but more often than not, there is a deeper issue.
Your financial condition becomes apparent when you take a close look at your spending and can clearly see what you can and cannot afford.
However, it’s also the first step in regaining control over your finances.
The best part of my budgeting advice is that getting started doesn’t have to be a hassle or even take that long, and the psychological advantages far outweigh any cash flow worries you might have. Here’s how to start a sentence.
Budgeting fundamentals for money maker
Breathe deeply, open up your computer or grab a pad, and check your bank accounts. However, give yourself a 30-minute time limit. The most crucial step is simply starting. You can check out lifestyle blogs written by amazingly organised people, watch flashy how-to videos on YouTube, or download free apps.
But the simplest budgets work the best. You only require a blank sheet of paper or a straightforward spreadsheet.
If you use online banking, you can quickly and easily obtain a list of your direct debits and standing orders.
List the dates on which your recurring payments are due, add up the cost, and then compare it to your income.
Include items that are paid for as you go in a different column, such as groceries, travel (when we can again), and lifestyle expenses like takeout and entertainment.
You’ll be surprised at how quickly this can be done, but the amount of money you have left over each month will be presented to you in very stark terms.
After clearing that out, let’s get some money back.
Examine your bank statements for the previous 13 months and make a note of anything unfamiliar.
Many individuals spend hundreds, if not thousands, of pounds year on sly annual debits for items they neither desired nor required.
These could be free trials for products or services you signed up for, or they could be more blatant stuff like iCloud storage or Amazon Prime.
Why 13 months? Many companies sign you up for yearly payments that may have passed your mind.
In order to find everything, go back a year and overlap by an extra month.
Ask your bank to immediately cancel any transactions you don’t want or need, and if you didn’t authorize the payments, ask for your money back.
It is up to the company that debited you to show that you authorised them to take the money. You can challenge unauthorised transactions directly with the company or through your bank or credit card issuer.
There are several things you can do to address the issue before it spirals out of control if you’re concerned that your household’s income is low or you’re finding it difficult to remain on top of things.
Financial troubles are subject to specific rules. Asking for assistance from the company can help you buy some time while you get back on your feet if you’re having trouble meeting your financial obligations.
If it’s worsening your condition, they should also think about temporarily halting interest and fees.
This does not imply that money you have already paid for will be reimbursed, but it does suggest that further fees you have paid for may be reimbursed if there is a good cause to do so.
If you’re having trouble making your payments on your loans or credit, inquire and explain your situation.
Mortgage and loan holidays provide you some breathing room to get your financial house in order, but keep in mind that the money you owe will only be added to the balance due at the conclusion of the mortgage or loan term, and additional interest may still be charged.
Cancel it if you don’t need it.
Don’t use your gym membership. Do you seldom watch TV on such streaming website? What about the £5/month healthy lifestyle app?
Getting rid of unnecessary items will save you money maker in the long run. What you find could surprise you.
We frequently are unaware of overpaying for contracts that have expired, being charged for subscription traps after free trials, or forgetting to cancel things like expired mobile phone insurance plans due to online bills and busy lives.
Get a plan, for free
Speak to a free program like StepChange, a nonprofit organisation created to assist people in regaining control of their finances, if your financial troubles seem to be more long-lasting.
They will speak with your creditors on your behalf and arrange affordable payments. Although difficult, there is a solution.
There are free alternatives available; never pay for a debt management service. And the last resorts are bankruptcy and IVAs. Unless you have exhausted all other options, avoid going there.
Excellent guidance can be found through organizations like Age Concern and Shelter or websites like MoneySavingExpert and Citizens Advice.
Regulators like Ofgem also give a comprehensive summary of the assistance programs available to anyone having financial difficulties (in this case energy).
Simply enter “financial troubles” and the regulator’s name into any search engine
