Living is expensive. Sometimes, it can feel as though you’re fighting an impossible battle, the money draining from your account almost as soon as it appears. Year on year, there is a never-ending multitude of necessities to cover, from gifts to vehicle maintenance, home repairs, income tax, and school trips. These costs are unavoidable, but it doesn’t help to make them any more affordable.
Don’t despair. Although it can seem daunting, there is a lot that you can do to address the situation if you’re willing to sit down and work through it. To get you started, here are some top tips to help cover your essential annual costs…
We all think that we’re budgeting, but a lot of people don’t really have the hang of it. You might feel that you don’t indulge in unnecessary luxuries or spend over the odds, but sometimes sitting down and going over your finances can reveal a very different picture. As tiresome and monotonous as it might seem, take the time to request an annual statement for your bank account, and look at where your money is actually going. Usually, some rather unexpected results emerge, and you may find that you can save a significant amount simply by cutting down in a specific area.
#2: Set Money Aside
The beauty of annual costs is that they’re often predictable, and from a financial viewpoint, this is very handy. Once you’ve looked over your income and outgoings, spend a few hours plotting out how much money you’ll have to pay out in the year ahead. Car insurance costs, the amount you’ll spend on gifts, your mortgage, shopping, and so on are all quite easy to estimate, and they’ll allow you to come up with a ballpark figure to set aside in order to cover them. If you want to bring this down, then take the time to look at who and where you’re buying from. A lot of people find that they can save a marked amount simply by switching their insurance provider, using a different local supermarket, or shopping around for contractors.
#3: Look at Your Savings Options
As we mentioned above, it can be a good idea to come up with an annual estimate of how much you’ll spend, and put money aside to cover this. For those who live hand to mouth, this luxury may not always be available, but where it is, it’s useful to know how much is left over to add to your savings. With the right bank account, you can help this total to grow with a minimal amount of effort, which is why ISAs, fixed rate bonds, and so on can be great financial tools for those willing to explore their benefits. Companies like Kent Reliance are a useful starting point if you’d like to discuss them in more detail.
Approach the problem with a clear mind and a plan in place, and you’ll soon find that covering your annual costs is much easier than it used to be.