Have you made any new year’s resolutions yet?
Now, like never before, is the best time to do it, considering the current economic situation and the rising cost of living.
It can be anything from saving for a new laptop to clearing your finances and organising your budget. Reassessing your personal and financial goals and knowing that your finances are in good shape can help you to free your mind and worry less.
How to do it? Follow our 5 easy steps!
1. Check your household budget –This is the best place to start. Revisit your budget and assess your weekly/monthly income, including any benefits, child maintenance, extra income etc.
2. Calculate your monthly spending – this can be time-consuming, but once it is done, you know where you stand. Take into consideration rising energy bills and higher grocery prices. Add up all bills, fuel, insurance, and travel costs, and remember to allocate an extra amount for unplanned spending. There are several online calculators and helpful websites you can find useful. For example: here
3. Start building an emergency fund – a broken car, a burnt-out boiler, or new school shoes for your little one? Make sure that you are prepared. Set up a separate savings pot, for example, via the First Defence Finance mobile app and keep putting some money aside. Planning this way will help you stay calm when an unexpected event requires extra funds.
4. Consolidate your debts – consolidate multiple existing loans, credit cards, or overdrafts into one easy monthly repayment loan.
5. Set up and keep tracking your goals – Think about your goals and start saving towards them. The best practice is to open separate saving accounts, name them and keep adding the amount you wish to save. First Defence Finance offers wide range of saving accounts. Consistency is key, and the sum will grow over time. A good practice is setting realistic goals, so you won’t feel discouraged. Revisit your savings accounts regularly, keep track of your money and see how you are getting closer to your dream goal.