Unless you are Jeff Bezos, your finances are likely to be finite. That means there is a limit on what you can spend each month. Unfortunately, some things tend to drain our finances, often unnecessarily. That is, we could do perfectly well without them. Luckily, you can find out about some of the most common below, and how to avoid or rectify them.
You need to deal with emergencies of all kinds as they occur. However, paying out through the nose for each one is something that can easily mean you fall into debt isn’t necessary. The best way to deal with an unexpected financial emergency such as the car breaking down or a bill you weren’t expecting is to create a fund specifically for this purpose.
This emergency fund can then be put into use when a sizable unexpected bill comes in. Something that means you don’t have to borrow money at a high-interest rate to resolve your problem. Many people choose to save at least 3-6 months outgoing costs for such issues, including mortgage or rent, food, and utilities.
Poorly chosen financial products
Experts almost unanimously agree that when it comes to money, putting your finances to work is always better than letting them sit in your bank account. However, to grow your assets successfully, you need to choose the right products. Otherwise, you can end up being out of pocket.
The good news is that there are independent financial advisers that you can consult before making any decisions on final products like pensions, credit cards, and investing.
Additionally, if you were mis-sold a financial product like a Self-Invested Personal Pension, you can find an expert that deals with sipp claims to represent you. Something that can help you to claim at least a significant portion of the money you lost back.
Subscriptions are everywhere these days from TV and movies to boxes of utilities and even tea! Of course, they seem like an excellent idea when you are signing up usually because it is impossible to turn down a special offer included.
However, the issue with subscription services of all forms, is that customers often end up paying for services that they don’t use! With that in mind, think carefully before you sign up for any subscriptions, especially if they are for a year or more.
Also look out for services that can be bought on a rolling month to month contract, as it’s much easier to cancel them when you discover you are not getting as much use out of them as you’d like.
Finally, if you want to stop paying out money unnecessarily, then eating out and takeaways need to be limited. After all, you can usually cook something very similar at home for around a 3rd of the price! That means 2/3rd extra going into the family finances every month. Something that can then be used to pay for any emergencies like the ones mentioned above, saving you further money.