Posted on: 3 February, 2020
Personal money management: How to feel more financially secure in 2020
Are you a saver or a spender?
A question that we’re all familiar with; yet, many of us can’t lead a happy lifestyle or feel financially secure without a little bit of both.
It’s great to be a saver, if that’s what you are, but without a little spending, how do you reap the rewards for all your saving efforts?
And, similarly, there’s nothing wrong with spending your well-earned money. But if you’re not financially secure, you may have little to salvage when a rainy day comes around.
Particularly in today’s world, the prospect of money management can be a little daunting. Life tends to get increasingly more expensive. As we transition from full-time working to retirement, the absence of a regular income can be difficult to get used to.
So, what can you do to feel more financially secure this year?
Choose a side hustle to feel financially secure
Whether you’re looking to make a little extra money on the side of your full-time job, or you’re looking to make an income as a retired individual, there’s every reason to gain profit from doing what you love.
That’s the great thing about choosing a side hustle. You can make money from whatever makes you happy – whether that’s making and selling crafts, or putting your childcare services into practice.
Save well in advance for retirement
It’s never too early to save for retirement. Although you’ll likely receive a pension, having that extra saving pot will offer you peace of mind when you need it the most.
No matter what stage you’re at in your life, it’s always important to draw up a budget. If you’re earning a wage, put away your savings first. Always make sure you’re taking advantage of pension plans that you may be eligible for.
If you’re already retired, take some time to explore senior discounts online and look at comparison sites. You’re probably paying more than you need to in a number of areas – from bills to transportation.
Take a look at our previous article to discover how you can save your money this year.
Set goals to pay off your debts
It’s always best to clear any debts you have before you make any big spending decisions.
If you find it difficult, try setting yourself small goals. Perhaps set aside a small amount each month initially, but always remember that it’s important to try and live beneath your means.
Whatever spending decisions you’re planning to make this year, remember that debts should always be a priority first. If you’re struggling to come up with that extra little bit of money you need each month, read our previous article about how you can still make money during retirement.
Research & negotiate
When it comes to spending money, it’s important to do your research first.
Often, you can find better deals within online comparison sites, such as Compare The Market and Go Compare. It’s important to avoid going with the easy option, and agreeing to the first price you’re offered for whatever it is you’re looking to buy.
Be sure to take the time to look around and investigate your sources. If you want to feel financially secure, it’s important to try and find the best deals you can.
Track your spending for a while
If spending has become a particular worry for you, try noting down every purchase you make for a whole month.
We often don’t realise how much we’re spending until we write it down on paper. By doing this, you can assess which items you really need, and which you can do without – and subsequently, cut down your spending in these areas.
Fortunately, in today’s world, there’s a wealth of online resources we can use to better manage our personal finances. Click here to discover more.