It’s all too easy to fall into the over-spending trap. It usually goes something like this – get paid, pay rent, pay bills, then treat yourself to something new; and it’s this casual spending that can leave you living paycheck to paycheck and not have anything left to save at the end of the month. Living like this can put you in a really precarious state – not having any money to use in case of an emergency or just as a safety net in general. So what can you do to get out of this bad habit? Read our list below to find out!
Cut the credit
The best thing you can do is stop using your credit card to buy small, non-essential items. Your credit card should only be used in times of need, and even only then when you know for a fact that you can pay it off fully, without having to use it again just to get by. If you are paying a high-interest rate it’s time to look into getting a balance transfer. Try to find a new company that offers a 0% interest rate for a set period that you can transfer your credit card debts to. Once you have done this work hard to clear your balance (paying more than the minimum every month) before the interest-free period is up.
Get the right bank account.
You probably think that traditional bank accounts are free – but in fact, you are paying for your account. Traditional banks often come with hidden charges and fees that make the cost of having an account much higher than they say, and actually ‘banks make billions of pounds in revenues from providing “free” current accounts’, because of these charges. Monese wants to change this – we have no hidden charges or fees and over the course of a year our account is up to 5x cheaper* than traditional bank accounts! We also know that our customers need to be able to send money abroad, that’s why when you send money with Monese it’s up to 8x cheaper than sending via a traditional bank. How is that possible? Well, it’s because we give you the real wholesale exchange rate and only charge 0.5% of the transaction value.
Do you know how much money you are bringing in each month? Yes? Great – you’re already on your way to having a solid budget. Track your spending (the Monese app is great for this), then make some mega cuts. Get rid of everything that is not essential, or dupes (think things like t.v subscriptions – do you really need more than one?). Once you have cut back, make sure you stack the money you are saving! There is no point in cutting down if you’re just going to spend the money you’ve saved on useless things!