How To Improve Your Financial Health

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Financial health
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How to improve your financial health

Having healthy finances will set you up for life and protect you in your later years. Being able to manage your finances well is a great skill to have and something which if you learn early on in life will mean you have less stress and more enjoyment throughout your days.

It’s so easy for people to lose control of their spending and to plunge into debt that seems impossible to get out of (see for help with debt and budgeting). The trick is to try to plan accordingly and work around any potential issues you may have with money before they become real problems that impact your daily life – easier said than done, right? Here we are going to delve into how to improve your financial health…

Reduce your outgoings

Reducing your expenses is easier than you think and there are several ways that you can do it.

Firstly, spend less than you earn. It sounds obvious, but many people do not adhere to it and instead make the mistake of living beyond their means each month.

Also, if there are any bills that you can negotiate a lower rate for then you can speak to the utility companies or product providers and ask for a more basic package or move to a different one who can offer a cheaper deal.

You should also consider the rule of ‘need versus want’. If you want to get serious and make your money work harder for you, then you should focus on what you need to spend money on and what you can do without.

Put some money away for a rainy day

However, putting it away in a savings account also means that it is insured in the event of an unfortunate event such as a fire or flood. So, if you are saving for anything in particular whether it is a wedding or holiday, or for retirement, you need to ensure this money is not at risk.

Learning how to save money and put it aside for when you need it is crucial to any personal finance plan. You are less likely to spend it if you put it away in a savings account, meaning that it is protected for your future.

We all have goals in mind for our finances, but before we know it, another month has passed and we have not done anything about them. Instead, we are likely to have spent our salary yet again and not have done anything about our long term goals.

Therefore, the sooner we write down these goals and create an action plan to take steps towards them, the more likely we are to achieve them.

Set financial goals

To start, it could just be what you want to achieve in the next year or be towards something tangible such as buying a house or car. Then, later on, you might want to look at long term goals such as creating a pension fund or a college fund for your kids.

These tips should set you up for better financial health both in the short term and long term so that if you apply them sooner rather than later, you can start benefitting from them straight away.

*This is a collaborative post

How to save for your child’s future

How to save for your childs future. Pink piggy bank surrounded by coins.
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Children grow up fast. Parents and guardians around the world know the feeling of realising that, out of nowhere, their child will be a teenager soon, and that they will begin to be interested in things like college and cars and flying the family nest. The issue is that helping to fund your child’s transition into young adult life isn’t cheap, and if you leave it too late, you could find that there isn’t enough money to go around.

One way to begin saving is with an ISA specially set up for children, whereby the money you pay in belongs to the child and cannot be accessed until they are an adult. Check out this junior investment isa info for more details. Now let’s continue with ways to save for your child’s future, because your little one is going to grow big with big plans to match!

The Used Toy Fund

If your child has accumulated many toys, and if those toys are taking over your house, you can use this as a way to make money and save for their future. Here’s how it works. First, agree with your child that perhaps seven or eight toys is the maximum number your child needs to own. Next, sell all the other toys (you can do this quickly using social media marketplace tools – generally, the buyer will even drive to your house to pick up the goods).

Add to this money each time your child wants a new toy, by selling a toy to make space. Although this sounds like a slow way to make money, you could be looking at replacing all seven or eight toys once per year, creating long-term savings that add up (first cars don’t buy themselves, for example, and the money saved from selling used toys can make a difference).

Ask For Birthday Money

Family and friends may be generous enough to buy birthday presents for your child. However, spending money on things that your child will only pick up once before storing under their bed (never to be seen again) is a waste of money. Instead, encourage your friends and family to make a donation towards your child’s future. Ask for a small amount and pull on their heart strings, saying that the money will go towards things like education. If you don’t ask for the money, you won’t get it. You have to be straightforward.

Your Own Savings

Setting up your own savings account is quick and easy. A mistake that many people make is to convince themselves that they can’t afford to save very much per month, so it won’t be worth it. But this isn’t true.

Even if you can only save a small amount, times that number by twelve for your yearly saving. Now, times that yearly number by eighteen for the eighteen years you will be saving towards your child’s future. That’s not too shabby a number now, is it? Certainly enough for a second hand car, and probably quite a few extras besides!

*This post is a collaborative post.