Debt Awareness Week runs from 22nd – 28th March, and it’s all about destigmatising debt. For most of us, general finances have been a cause of concern since the pandemic began. Fears around job stability, bills, mortgages, lower-income and debt are not going away anytime soon, so the 2021 debt awareness week is perhaps one of the most important ones yet.
We’re now 12-months into the pandemic, and you may be facing new worries or still recovering from big challenges or changes that you may have faced in the past year. Being as prepared as possible, and organising your finances is a productive way to help ease those anxious feelings, just so you can get ahead of the game. Here is our guide to help you feel on top of your finances:
Tip 1: Don’t spend impulsively.
Although the 24-hour 30% off sale sounds great – does it fit into your budget? If you don’t need it right now then leave it, there will be other sales. Spend the money when you won’t feel as guilty about it.
Tip 2: Budget.
There’s a reason why successful businesses are built on budgets and monitored spending. Make sure your finances are balanced out and save most of what you have leftover. You can always treat yourself with something if you can afford it – but don’t overdo it as you don’t know what’s around the corner.
Tip 3: Plan your spend.
Work out on a 3-6 monthly basis. Try and predict what your essential spends will be for the upcoming months – this will be a great way to start your budgeting accurately.
Tip 4: Save, save, save!
Simple – but massively effective. It really is hard to predict life at the moment, so any money that you have set aside can change a non-ideal situation massively. If you aren’t finding yourself with much left over after paying for the essentials, then see if you can cut costs elsewhere, such as trying alternative supermarkets and switching utilities.
Tip 5: Prioritise.
If you have any debt or owed payments, work out the most financially sound order to start repaying them – highest interest rates first. Organise your debts in a way that works well for you. Writing everything down and properly working through them is a much more structured way of dealing with your financial setbacks – this is the first step.
Tip 6: End your bad habits.
Spending impulsively, dipping into savings or using your overdraft when unnecessary, ordering out a bit too often when there’s food at home… It’s time to wipe these clean! Start developing frugal habits instead.