Don’t have a clue?
In the modern world, a lot of people seem to have trouble with how to keep track of the amount of money that they’re spending each month. With everything leaving your bank account automatically these days, it is very easy to forget when you’re paying for things. If you were just a little bit more careful about your filing system, you might find that you were able to sort things out a lot easier without having to worry about it.
When you get new post, what do you do with it? If you’re anything like a lot of people, you will just put it into the bin and then forget about it. However, if you want to be able to save money in the long term, you really have to start taking more responsibility for your finances and making a little bit more of an effort to your out your money. You should have a large file for each year of your life, and keep finance records for as long as you possibly can. Each month should have its own divider, and then all of the bills that you receive should be kept in there.
When you get a bill through the post, don’t just place it into your file. The most important thing that you need to do is read through it and make sure that you’re supposed to be paying it. You would not believe the amount of people who are still paying insurance schemes for mobile phones or other gadgets that they have not owned for a long time, for example. The best thing to do would be to look at everything before it gets filed, and if there are any payments that you need to get rid of, this should be done before you put the letter down, otherwise it is just something that you will never get around to doing at all.
Charitable donations are great, but sometimes we can end up paying a lot each month. When we sign up to them, we might be forgetting that we had signed up for more charities in the past, which means that our £2 per month for each charity eventually adds up into something that we can no longer afford. There is nothing wrong with cancelling a regular donation, as you at least helped the charity when you were giving, and you know that there is always the option to continue doing so again when you can afford to.
When I did this with my finances, I found that I was able to save £60 per month on things that I no longer needed to spend but that I had just never got around to cancelling. Companies make a lot of money from people who end up still paying them for things that they’re not receiving, so it is very important that you keep checking. After all, the money is better off in your pocket than in theirs!
Published in: Personal Finance