Taking control of your finances can seem daunting – especially if you struggle to repay your debts each month. Fortunately, there are several budgeting tricks you can use to reduce your outgoings and free up some extra cash each month.
Create a budgeting planner
A budgeting planner contains all your debts and outgoings. For example, this should include:
- rent;
- council tax;
- loans;
- subscription fees
In short, anything which you get charged for on a monthly basis will get listed here. Once you have a clear idea of how much you need to spend each month, then you can look at ways to free up some cash for these expenses. For instance, a gym membership can vary in cost but often these can be purchased but not used regularly. Consequently, if you are struggling to get to the gym, it might be worth closing your account and saving on the cost.
Are you paying too much for your food?
Many households throughout the UK unfortunately waste food. To avoid this, consider writing a list and preparing your meals for the week. Furthermore, combine with the budget planner to identify how much you can reasonably afford to spend and look at cutting costs where appropriate. It’s also worthwhile collecting points on a reward card and keep an eye out for special deals! You could be surprised at how much you can save through one of the smaller, budget supermarkets.
How does this help my credit score?
Budgeting this way will help you get a clear idea of how to comfortably spend your money. Cutting back on the non-essential purchases and finding cheaper deals will give you more funds to repay your debts. By making the regular repayments on your debts, in the long-term you should eventually see some real improvements in your credit score when you become debt-free.
