If you’re worried about managing your money, you’re not alone. Finances are one of the biggest concerns for millions of people in the UK.
In January 2024, 28% of adults reported finding it difficult to cope financially. Given the rising cost of living, their worries are a completely valid cause for concern.
With constantly increasing inflation and living expenses, many people are struggling with financial burdens from unexpected expenses to day to day living. When faced with these obstacles, it can be challenging to get by from one day to the next, let alone save money and plan for the future - but it’s not impossible.
Worrying about your financial problems may not help you solve them. But, having a plan to manage your financial burdens can help lighten the load of your obligations.
In this article, we’ll explore some tips to help you plan for a better financial future. By facing your financial problems head-on, you can start to improve your overall financial outlook.
1) Declutter Your Budget
Life rarely stays the same and regular budget checkups and tidy ups are essential to improve your financial health. Reviewing your finances regularly is one of the best ways to ensure you’re living within your means.
Having a budget for yourself is excellent, but sticking to it is the real challenge. It’s a good idea to allocate money for essential expenses first, such as rent, utilities, and groceries before determining how much you can save. If you have any money left, it can then be put towards your savings and wants, such as entertainment or personal hobbies.
If you think that you’re spending more than you have coming in, you’ll need to review your outgoing expenses. There’s a good chance that you may find some ways to make additional savings.
Try keeping a spending diary or note down every purchase you make during a month. If your expenses are largely made using credit or debit cards, examine your last month’s statement to work out exactly where your money is going.
The key to overcoming your financial burdens is setting aside some time to schedule, organise, and declutter the money coming in and out of your bank account. You’ll find that with more control, there should be less financial stress.
2) Get Serious About Dealing With Debt
Getting serious about tackling your debts and creating a debt repayment plan is another effective way to ease your financial burdens.
Every debt is different and needs to be treated differently. High-interest debt, if not actively addressed, can snowball and eventually become unmanageable. It’s a good idea to focus on paying down this type of debt first.
In your debt repayment plan, allocate as much of your funds as possible from your budget towards these debts, whilst also making the minimum payments on others. By committing to paying off your debt as soon as possible, you’ll find that you have additional funds that can be utilised more efficiently.
3) Lower Your Expenses
If money’s tight, you may reach a point where you feel that there aren’t enough funds to handle your financial burdens. However, there’s still plenty you can do with the income you have.
One of the first steps to living within your means is cutting unnecessary spending and looking for ways to reduce your discretionary expenses. For example, cooking at home instead of ordering takeout or switching to more affordable brands can be beneficial. The extra money you save here can then be put towards debt repayment.
Lowering your expenses is an effective way to put some money aside and build up your savings account. Whilst it may feel like a step backwards in the short term, it will allow you much greater opportunities in the long term.
4) Increase Your Income
There’s only so much you can do with your budget, without it turning into another source of financial stress. That’s why we believe that you may find more relief from your financial burdens if you increase your income instead.
Increasing your income is certainly easier said than done, and comes with its own challenges. Fortunately, when it comes to boosting income, even a small increase can make a big difference and there are many ways to go about it.
If you have time, explore a side job, part-time work or freelance opportunities to convert your spare time into extra cash. If you find yourself short on time, there are other ways to make passive income. By finding new ways to supplement your current income, you could even accelerate your journey out of debt.
Having several sources of income, even if they are not all equal, will improve your financial resilience. Although not an option for everyone, it’s definitely worth exploring.
5) Build an Emergency Fund
One of the main reasons people fall into debt is due to unexpected expenses. These expenses appear without warning and can throw your finances into disarray if you’re not prepared to overcome them.
An emergency fund is a collection of savings that you gradually build up over time to cover the cost of any financial emergencies. Ideally, this fund would consist of three to six months’ worth of living expenses and serves as a financial safety net to help you navigate unexpected financial burdens. However, if 3 months seems too much to think about, any amount of emergency savings can make a big difference.
Having an emergency fund or savings in place will help you avoid relying on credit options if unexpected financial challenges were to arise. This will help you avoid debt and maintain your financial stability.
Choose Salad Money for Fair and Affordable Personal Loans
While overcoming financial burdens may appear challenging, there are many ways you can start easing your financial burdens. By spending some time on some of the above tips, you can start to overcome a cycle of debt and work towards a less stressful financial future.
At Salad Money, we care about your financial health. We understand that life isn’t always fair and there may be times you need some financial help. That’s why we offer fair and affordable personal loans to lighten the load of your financial burdens, when you need it.
As a leading online lender in the UK, we support you in your journey to take back control of your finances. Our ‘More Than Your Score’ loans provide you with financial support when you need it the most.
We utilise an Open-Banking-based assessment system to analyse loan affordability based on your current financial situation, instead of just your credit score. What’s more, we’re an FCA-regulated and authorised organisation, so your data will remain safe and secure.
Apply for our personal loans now and to read more blogs like this one, visit our blog page.
