Home Business Insights & Advice Six tips for staying on top of your finances

Six tips for staying on top of your finances

by Sarah Dunsby
23rd Aug 23 12:50 pm

You are not alone if you struggle with staying on top of your finances! Millions of people are struggling with their finances, especially with the cost of living hitting everybody like a tonne of bricks. Whether you are deeply in your overdraft, behind on credit card payments, or your savings are not where you would like them to be, this article will be for you.

1. Submitting your own corporation tax return

Whether you are coming to the end of your Company’s first year of trading or have been trading for several years, at the end of each year, you need to file a Corporation Tax Return with HMRC and submit a corporation tax return. You may choose to use the services of an accountant or do it yourself.

With these new pieces of financial knowledge, you will be able to take on any financial mishap in the future.

2. Automate your savings.

Automating your savings is a great way to ensure that you do save; this way, you will treat your savings like a household bill. You will be able to calculate how much you will be saving per month by taking a percentage of your living wage; you will need to work out how much you will be financially able to save, afford your other bills, and have some money for you during the month. This is commonly 20% of your monthly income. Something else you can do with the automation side of saving is “rounding up” With this, you can round up every purchase; for example, if you buy a sandwich for £2.60, your card will charge you £3.00, and it will pay for that sandwich along with also saving an additional 40p from rounding up.

3. Cut out unnecessary bills.

Most people pay bills that can easily be cut out, and you would not even notice. These include subscription services like Netflix, Spotify and Amazon Prime. Eating out is another unnecessary bill that can be avoided by giving yourself a budget every month; this way, you can enjoy yourself and save money ready to fit your goal. Finally, overspending on pieces of clothing is an expenditure that can be avoided if you are smart about where you shop and/or the type of clothing you are looking for. Instead of going to shops like ASOS, Urban Outfitters and Zara, you could check out online retailers like Vinted, which is second-hand but also has outstanding quality and, best of all, they are a fraction of the price.

4. Create an emergency fund.

Creating an emergency fund is essential when building a family of your own; this is for the emergencies that you hope never come but always will if you don’t prepare. This is more commonly called a rainy-day fund, so if you need to help a family member out, if you have car troubles that need urgent attention, or maybe you might need some time off work due to redundancy, having that emergency fund will give you and your family peace of mind, along with also not needing to go into debt but getting a loan out to “get by”.

5. Finding ways to build up your credit score

If you plan on owning a house someday, your credit score will need to be fantastic; there are many ways you will be able to do this. This includes paying off all of your debts on time and ensuring you never miss a payment. It would help if you also explored getting a credit card; this may sound scary and unneeded, but showing the bank that you can borrow money and pay it back on time will improve your credit score exponentially. Other things you can do to improve your credit score are small things like making sure that the bill for your phone contract is coming out of your bank account, not your parents.

6. Saving money on your household bills

If you’re smart about it, you can save some money on your household bills, possibly through your water or electricity bills, with energy prices soaring in recent years. To get around this, you could research if another company’s standard tariff is cheaper than your current one. Another bill you will be able to research and potentially change is your phone bill; you will be able to check if other phone providers are cheaper than others; If they are, you may need to stay there for a while as you will be under contract, but it is good to know the pricing for future reference.

With these new pieces of financial knowledge, you will be able to take on any financial mishap in the future.

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