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There is always priority financial action that pretty much all of us must take. It gets easier as you get your money under control. But it is an ongoing process. Whether you have serious debts or are in a better position, here are some suggestions for ensuring a little more financial freedom.
Get Rid of Unsecured Debt
Unsecured debt sounds serious. All it means is debt that you pay back with money only. This means you haven’t put up something that the lender can take if you don’t pay the money back. A good example is pawning your jewelry for a loan, or even your mortgage. Most of us use unsecured debt for this reason. But it can get out of hand and drag you down. Experts like Alex Kleyner recommend services like National Debt Helpline to help reduce unsecured debt.
Stop Spending Money
This is a big one. Many of us are guilty of spending more than we should, and the pressure of holidays like Christmas can add to this. When you spend more money than you have, debt spirals out of control. While easier said than done, the trick is to stop spending. If you have a problem or shopping addiction, it might help to seek professional support. However, impulse buying is also an issue. Learn your impulses so you can work on avoiding them in the future.
Paying Bills is a Priority Financial Action
You aren’t alone if you miss bills. In the UK alone, over 7 million people missed bills in January 2024. Bills are a priority. And some more than others. Priority bills include gas, electricity, and water. Not paying these can end up in serious debt. It is uncommon to have them cut off, but they will be a monkey on your back for years as you repay what you owe. Given the cost of priority services these days, missing these bills will result in owning vast sums of money.
Change How You Shop
Shopping for things like groceries, essentials, and clothing are among the highest costs you have. Changing how you shop is a powerful way to lower your household’s monthly expenses. This can be a challenge, though. For example, switching to a discount store for your food can feel like a downgrade. But the food quality is often the same or, in some cases, better. You also don’t need to buy every new clothing item you see, and designer clothes are often a rip-off!
Budget and Plan, Plan and Budget
You can’t take positive actions if you don’t know what you have to work with. The best way to engage with your own financial situation is to plan and budget. After prioritizing expenses and bills, work out what you have left. This can be divided weekly for your food shopping, which guarantees savings when you budget. You can save money on shopping by making a meal plan and sticking to the shopping list! So, no more impulse buys as you go down the aisles!
Summary
Paying off unsecured debt and getting control of them is a priority financial action as you try to tame your costs. Ensuring you keep on top of essential bills will also make a big difference. But before you can do anything, it helps to create a budget and plan where to use your money.
