The start of a new year is always motivational for positive change–and one of the most commonly made resolutions each year is people vowing to sort out their finances.
Money is always going to be tricky to manage whether you earn a little or a lot, but if you go about things carefully and make good decisions, everything becomes much easier to manage.
Here are just a few ways you can make better financial moves in 2020:
Whether you’re a family or a single person, whether you earn a small wage or a large one, you should have a budget in place to help you manage your spending.
When you know exactly what you have coming in and what goes out each month in regards to your money, it makes it easy to stay on top of things. You have less chance of getting in debt or falling behind with your bills, you stay in control, and will find it easier to save as well.
Clear Your Debts
For most people, being in debt is one of the most significant drains of their finances. If you have found yourself in trouble with money where you’ve fallen behind and can’t even afford to make the minimum payments any more, you need to take action and dont just bury your head in the sand.
Speak to a debt management company as they can work to negotiate things like reduced or frozen interest on your debts and can also liaise with your creditors to stop the phone calls and letters.
This can be a huge weight off your mind and really help you regain control of your finances.
Invest If You Can
If you’re lucky enough to already have some money behind you, making smart investments can make this money work harder for you. Instead of earning a small amount in a high interest bank account, it can earn a lot more in a passive way.
You could invest in business, in property or have a finance company manage things for you, this allows you to earn money in a passive way and ensure it’s being managed well without it taking a lot of your time and/or energy. If you put your money to work, you’ll really reap the rewards over time.
Improve Your Job Prospects
One of the best ways to boost your income in the long run is by improving your career options and being able to earn more money at work. Do you have any progression in your career? If so, figure out what you need to do to gain a promotion. You could take on some voluntary work, or study for an online course in your free time, there are plenty to choose from these days and they’re very flexible.
If you’re stuck in a dead end job, improving your education is a great way to improve your job prospects and open new doors that previously would have been locked to you.
Improve Your Credit Score
A great way to start improving your financial situation is by building your credit. The good news is you can control your credit score, starting now! To make 2020 your best credit year yet, always pay your bills on time, catch up on any missed payments and keep credit utilization under 30% of your credit limit.
Using a credit-enhancing DIY software such as ScoreShuttle is a great way to start working on your credit.
Start Your Own Company
Thanks to the internet, anyone who has passion or interest is now able to set up their own business and really do very well from the income. You might get lucky and turn it into your full time job later down the line, or it could just be a way to improve your skills and earn some extra pocket money on the side.
You’re the boss so you get to choose when you want to work and how many hours you put in. From buying and selling to creating products to sell, to blogging to freelancing, there are plenty of options these days and you dont even need to leave the house to earn from them.
Sell What You Don’t Need
The average household is home to all kinds of items which can give you some extra money- things you don’t even need. Things like technology, books, cds, dvds, games and other items can be sold online or at a tag sale–they might not be worth massive amounts on their own, but add it all up and it could raise you a good chunk of cash.
You could then use this money you make to pay off some debt, add to your savings, or to buy things you need. You free up space and get to declutter your house, and in the process can improve your financial situation.
Run Your Utilities Through Price Comparison Sites
One place that most of us overspend without even realizing is on our regular bills and utilities. They issue a bill, and we (reluctantly) pay it, not giving much thought as to whether it could be made cheaper. Spend a morning running quotes through a price comparison site, seeing if other companies or tariffs could save you money over the course of a year.
Look at the best data cell phone plans and broadband deals, as these generally vary wildly in price. You always want to make sure you’re getting the best deals for the things you both want and need.
How do you stay on top of your finances? Let us know in the comments below!