The holiday season is a time when many of us are spending a little more than usual and our money may need to be a little further. As we enter another New Year, now is the best time to rethink our spending habits and get our finances in order.
Whether you’re a first-time buyer looking to take the first step on the real estate ladder or an existing homeowner looking to move up to the next level, Brian Murphy, Head of Lending at mortgage advisory office, shares his top budgeting tips for 2022.
Cut costs where you can
Cost savings are undoubtedly essential, but they also have to be feasible. It’s good to know how much income you have compared to what you spend so that you can prioritize what you do and don’t need. For example, what subscriptions or memberships do you have that you don’t use? Are there household bills that you can get better deals on? Any excess money you have left can then go to a savings account to make that vital deposit.
Create a budget
Organizing your finances is key to starting your savings journey. Using a budget calculator can help you keep track of your income and expenses, be it for your rent, mortgage or other expenses, while at the same time keeping track of any savings you want to make.
Save little and often
Saving doesn’t have to be daunting or get you into financial trouble. Instead of setting aside large, unrealistic sums of money that you struggle to struggle for the rest of the month, you can save small amounts here and there to help you meet long-term savings goals. It can be so easy to find cheaper alternatives to your favorite snacks at the grocery store. Some banks also offer a “save rounds up” option, which means that if you spend £ 1.80 on an item, for example, the account will “round up” the transaction and set aside 20p in a separate pot. In this way you can save often and little without even realizing it. And you will be surprised how quickly your savings pot grows.
Take into account your priorities
When it comes to your finances, planning is crucial. Depending on how quickly you want to reach your ultimate goal, you can forego all luxuries such as vacation and meals and put every free penny on your savings goal. Someone else might want to keep their luxury but decide not to get a new car.
The key is to find the right balance for you. The best thing to do is sit down, budget and plan what you want to achieve and spend your money.
Shop around for the best deal
ONE mortgage is one of the greatest financial commitments anyone can make. Whether you’re a new buyer or looking to reschedule, make sure you shop around for the best deals that suit you and don’t let the headline guesswork fool you. Talk to a mortgage The advisor will help you understand what is best for you.