Each year typically starts with hoards of people joining the gym and setting personal fitness goals that are eventually abandoned. To make this year different, why not get your finances into shape instead?
Becoming financially fit in some ways is similar to becoming physically fit. In order to build muscle and become strong, you need to put in the hard work and be dedicated to the outcome. No matter what comes up or shakes you, the discipline remains. Except, in this case, you’re building a budget and staying consistent with saving habits rather than gym visits.
How to get financially fit
Ensure your cash flow IN is greater than your cash flow OUT.
If you’re spending more than you earn, your savings will never accumulate, this is where a budget is the ultimate savings tool! Developing a budget isn’t hard and doesn’t have to mean limiting everything that makes you happy, it simply means keeping an eye on and tracking how much you can spend. Having a budget ensures you stay in control of your finances while still living life to the fullest.
Refinance your mortgage.
The loan you committed to years ago may not be the best option for you now, compare your home loan interest rate with those currently on the market to ensure you’ve got the best deal. Refinancing your home loan allows you to take advantage of a lower interest rate that wasn’t available when you signed on. With a home loan health check you can determine if there are better options out there that can help your savings long term.
Review your outgoing costs.
Direct debit costs such as utilities and subscriptions might go unnoticed but they can build up to a decent amount of money. Kick out those direct debits that aren’t serving you and see if there’s room to save more on household utilities. Maybe a new provider has hit the market that’s even cheaper than your current gas and electricity bundle?
Through SFE Loans Connect you can compare household service providers for free to ensure you’re getting the most bang for your buck!
Have an emergency savings fund.
Things don’t always go to plan and you’re bound to have unexpected bills and costs thrown your way at some point in life, that’s where an emergency savings account is essential. Planning ahead for a car breakdown or leaking dishwasher means you won’t be left grasping at straws when your cash flow for that week ends up being splurged on an essential yet less than desirable cost.
Want to master your money management? SFE Loans can help! Get in touch with us today and prepare to be educated and empowered to take on your wealth.