As the UK and United states continues to show signs of economic downturn and cost of food, fuel and interest rate continues to rise, knowing how to reduce your expenses and changing your spending habits can make your money go further during economic recessions and economic downturn.
Switch your mortgage: If you have a mortgage and your interest payment is too high. Why not switch your mortgage to a better deal. You will surprise at the savings you could make. To find out the best deals on offer use a fees free broker to check.
Use energy saving appliances: Your annual fuel bill will fall, when you use the most efficient home appliances. New electrical appliances have the energy saving logo, so choosing the most efficient one. Using energy saving light bulbs can last longer and reduce your electricity bills.
Cut down on driving - Running a car can be very costly especially as petrol prices, insurance and road taxes continue to rise. The best action is to abandon your car and use public transport. But if having a car is a must, why not consider buying a less powerful, more fuel efficient car. Your running cost will be lower. Slowing down when driving can save you money on car fuel bill. A recent research found that most car engine run most efficient at 50 -70 miles per hour than at 80mph.Save on car insurance but searching for cheaper car insurance online.
Avoid using expensive credit cards – Do not buy anything you can not afford with a credit card. Credit cards are an expensive way of borrowing than your local bank loan which offers better rates and better terms for you. If you are going to use a credit card, use credit card that offers 0% on balance transfers.
Cut down on expensive sandwich and junk foods – sandwiches, Burgers, fizzy drinks, sweets, potato crisps and takeaways are more expensive and do not nourish your body like the less cheaper fruits and vegetables. Instead of buying a expensive sandwich from a shop, taking a pack lunch will save you a lot of money.
Stop smoking and drinking – last April the government increased the taxes on cigarettes and alcohols. You could save thousands a year just by stopping smoking and drinking. The average price for a packet of 20 in the UK is £5. For a 20 a day smoking habit will cost over £1500 a year.
Do your shopping online. – shopping online can save you money. Online retailers are usually cheaper than high street retailers due to lower running cost. Thousands of online retailers offer cash back deals, which will reduce your shopping cost even further.
Open a high interest savings account – You can receive a higher interest rate when you open an online savings account than a regular current account. If you are not getting the best possible interest rate for your current saving account, you can move to a higher interest account.
Draw a budget - To handle your personal finance properly you will need to write a budget and then stick to it. When creating a budget you will need to consider your past spending and personal debt and then allocates your future personal income towards your savings, debt repayment and expenses. There are various tools available to help to create your personal budget such as the Mint.
Cut your mobile and telephone cost – there are numerous choices of telephone and mobile deals and packages to choose from. If you are paying too much for your monthly calls and text, while not consider switching to a cheaper tariff provider.
Personal finance is a common phrase you will find on most financial websites. But exactly is personal finance and how can you handle your personal finance properly. Personal finance is the application of the principles of finance to financial decision of individuals. It involves budgeting, saving and spending and taking into account financial risks and future life events.
To handle your personal finance properly you will need to write a budget and then stick to it. When creating a budget you will need to consider your past spending and personal debt and then allocates your future personal income towards your savings, debt repayment and expenses.
There are various tools available to help to create your personal budget.
Pencil and paper – A simple budget can be written on a piece of paper with a pencil.
Spreadsheet software – Software such as Microsoft excel or openoffice.org can helps you to create and arrange budgets according to your need. Calculations can easily be performed using basic formulas.
Money management software – there are many software written specifically for money management purposes. Microsoft money and Quicken are example of money management software.
Once a budget is constructed and resources (amounts) are allocated to their categories there are various methods available to follow a budget. One method is known as envelope accounting. Envelope accounting is a method of budgeting where on a regular basis you set aside certain amount of money for specific purpose in an envelope marked for that purpose. Another method of following a budget is known as spreadsheet date –shifting. This method involves a spreadsheet that offers date-shifting typically a view of a 12 month. In this way previous expenses and results can be viewed when creating or adjusting the budgeting plan.
As the world economy, especially the UK and United states continues to show signs of recession and slow growth. Debt obligations rising for many people and interest rate not likely to fall in the coming month due to raised inflation. It is expected that many people may be consider filing for bankruptcy.
Before taking this action it is important to know some basic trued and consequences of such action. Below are some frequently asked questions about bankruptcy and answers which I hope you will helpful.
When should I start filing for bankruptcy? - Bankruptcy should only be filed only until the last minute before being taken to court by your creditors. This is because in certain cases an individual can work with a credit counseling agency to help lower their monthly payments and learn how to manage their finances in a better way.
How long will my bankruptcy be on my credit report? - Bankruptcy filed can remain on a person’s credit report for as long as ten years. This will have a negative impact on your credit score, but after the bankruptcy period is over your debts will appear as zero on your credit report.
Can I have a bank account after I have filed for bankruptcy? - There is nothing in the bankruptcy legislation which prevents a bankrupt from holding an account, but you should tell the bank or building society that you are bankrupt.
It is the bank’s decision as to whether to allow an account to be opened by the bankrupt.
How do I make myself bankrupt? - Go to the court within whose jurisdiction you live, obtain the forms and find out how much the fee will be. Fill out the forms and return to court with the fee payable. Above all take advice before you take what is a very major step.
