Setting the Stage for a Big Financial Victory This Year

Are you thinking about your finances? Most people around the UK definitely are, and for good reason. The markets are still cooling off and many are afraid that the meltdown in Greece will move over to the UK and cause even more calls for austerity. It’s hard to think about tightening a belt that has already been tightened many times, but many Britons are having to do just that. As the cost of services rises, the wages are not always following suit. What can the average UK family do to set the stage for a big financial victory this year, when there are clearly so many problems still looming on the horizon?

Here are a few tips

1. Go Back to Basics

It is truly time to go back to the way things were in forgotten eras. You did not spend everything that you earned, saving it for a rainy day. There are plenty of sites online that can and will indeed help you find a good savings account. You might have to move your money around in order to get the best rates. Money Vista’s Savings Watch widget will not only tell you when your introductory rate is expiring, but they will also let you know how much interest you could earn by switching accounts to something with a higher level of interest. Are you really going to just let money sit on the shelf, unclaimed? We certainly hope not! Make sure that you are putting it into a separate bank account. Of course, you might wonder if you really do need to separate your funds this way.

The answer is definitely yes. We can’t speak for everyone, but our financial team has found collectively that the separate account really lets us save a lot more money than if we just left the money in the standard account. This is because it’s so tempting to spend money once you see it’s there. It’s better to go ahead and let that money go. In fact, if you really want to rev up your savings you should be saving your money right after you get paid. Many employers have no problem using direct deposit to send your money to more than one checking account. Look into that, as the savings could definitely be worth it.

2. Make a Real Plan (and Stick to It)

Hardcore budgeting isn’t for everyone — there have been a few documentaries on families that go to extreme measures in order to save money and get out of debt. However, if you know that this isn’t something that you will be able to stick to in the long run, why even bother going down this road? Saving is all about working with your own personality. You know what needs to be paid every month, but you will also want to go out and have a good time. You’re going to want to hang out with friends and even buy something nice for yourself once in a while.

The right budget is the one that lets you handle those things without losing your cool. Will you always be able to go out and eat with your friends? No, not at all. However, will you be able to work in those moments after a time? Sure you can. It’s all about knowing where you ultimately stand with everything around you.

You don’t have to wait until your bills are due to pay them. Paying your bills early can give you a sense of accomplishment, and it can also save you a bundle in interest over time. Many interest charges are calculated after a grace period has been exceeded, so sending in your payment before this grace period ends will save you money.
Getting your budget right can take time, and there will be mistakes along the way. Staying focused and not giving up is the best thing that you can do for your life.

3. Think of the Future

When it comes to changing your life and setting the stage for a big financial victory, you have to know what you’re honestly fighting for. Are you thinking about saving for another baby, or going back to school? You can plan out a lot of great things for your life through a financial blueprint. However you have to want to take those steps. If you’re not there mentally, you will not be “there” financially.

Overall, there are plenty of options you have for a big financial victory. Saving money and paying off debt is wise when the markets aren’t doing well. If you are thinking about switching jobs, make sure that you have a formal job offer in hand before you put in a two week notice. That way you will not be trapped in the cycle that comes from not having anything to fall back on in case you aren’t picked for the job.

Good luck and remember — planning is great, but execution is even better!