Tips For Saving Money For A Big Event

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In life, there will always be big purchases that we need to make. Whether this is a house, a car or a vacation, life, unfortunately, is expensive. And it is made even harder with all the things that crop up in between – birthdays, anniversaries, weekends away. All of these can add up and you find that your money going out is significantly bigger than what is coming in. This can be a nightmare when you are trying to save, as you don’t want to stop doing fun things either. This is why it is a good idea to look into different ways that you can save. Here are some top tips for saving money for a big event…

 

Pay off your debt

While having a credit card can give off the illusion that you have more money, it is in fact far from the truth. A credit card or other debt can have you paying huge amounts of interest over many months, which is literally flushing money away. By paying off this debt you are reducing your monthly payments and will soon have much more disposable income that you can save.

 

Set yourself a weekly budget

If you give yourself a weekly budget then it will be much easier to plan ahead what you can spend when. Take this money out on a Monday and try not to go over the amount. If you don’t spend it all, then put the remainder back in your savings account. It is a good idea to divide it into separate pots so you know what you have for when and don’t need to worry about overspending on the first week and having nothing left by the end of the month.

 

See how you can make extra money on the side

There are so many ways that you can make money on the side, so why not do it to help you save? You could try affiliate marketing if you have a blog – why not look up does Website ATM work? You could do some freelance writing or photography, or you could sell clothes that you no longer wear or want on a second-hand site like Depop or eBay.

 

Try an app that can help you 

There are a host of apps out there that are designed to help you to save for a big event in your life. You could sign up to a digital bank such as Starling or Revolut who can round up your spending each time you pay by card and put the remainder automatically into a savings account for you.

These are a few simple ways that can help you to save money for a big event. Remember, it is okay to dip into your savings every now and then (that is what they are there for!) but try to stick to your budget where possible. Saving will get easier once you are in a habit of it – and you will be surprised at how much you manage to save!

Is Your Home Buying Budget Good Enough?

Buying your own home, especially if you’re a first time buyer, is going to be an incredibly expensive and exciting thing to do. You’ll finally have a place to call your own, and you’ll be able to decorate and furnish and garden in just the way you like! 

However, putting together a budget for a big life move like this is going to be one of the hardest things you’ve ever done. There are a lot of mistakes that can be made, and working out what you can and can’t afford can get pretty complicated – even having banks and loan companies weighing in doesn’t help! 

But if you’ve got your heart set on being a homeowner in the near future, and you’re sure you can manage it, you’ll need to ask some questions. If you’re not sure what the answers should look like, we’ve got pointers for you below.

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Work Out the Numbers

Working out the numbers is the first main step in drawing up a house buying budget, simply because they’re all you have to work off. The housing market rises and falls every single day, and you have no idea whether or not that dream property down the road is going to stay at that relatively affordable price, so you need something more concrete to make use of. 

As such, you need to think about your own numbers. Your gross income, your current expenses, what you would be able to afford in terms of mortgage repayments, etc. You’re also going to want to take into account the kind of savings/bank accounts you’re currently using – if you don’t have a long term investment ISA on your side, now might be a good time to set one up. 

Once this is all put together, then consider outside funding sources, such as help from friends and family, and it’s a good idea to check the government website, in case there’s a grant you can apply for. 

 

Look into Loan Options Ahead of Time

If you know you’re planning to buy a home of your own in the next 3 or 4 months, you’re going to want to look into mortgage options now, rather than after you’ve found the perfect property. Because when you’ve got a loan ahead of time, and you’re pre-approved to take it out, you’ll have much better luck in locking down your dream home dream. 

Overall, getting pre-approved for a mortgage has a lot of benefits. Most of all, it ensures you can move in much quicker, as a seller is much more likely to trust the offer of a potential buyer that has a home loan to back them up. And not only that, but when the mortgage is already in the bag, you’ll be able to adjust your budget accordingly, which gives you a lot more wiggle room, and a more accurate picture of what life as a homeowner is going to be like. 

 

How Far are You Willing to Go?

Of course, a big part of buying a home of your own is determining how much risk you’re comfortable with. And a big part of determining this is your responsibilities – if it’s just you and your partner, for example, you’re likely to want to spend close to the edge of your budget. However, on the other hand, if you’ve got kids to take care of (or other elderly family members living with you), you’re going to want to play it as safely as possible. 

It’s also about the savings you have in the bank; if you’ve got an emergency fund, or even just a bit of capital sitting in an investment fund, you’re also not going to be too fussed about buying a house that’s slightly over budget. You know you’ve got support there, if need be, and that’s something to keep in mind when it comes to home ownership. You can overspend, if need be, but at what cost?

 

What to Keep in Mind

The budget you’ve put together to buy a home needs to be watertight; you’ve got a lot of expenses coming up, and there’s little room for making a mistake. As such, your budget needs to have a bit of wiggle room either way, and it needs to understand the risk you’re willing to take in buying a home. So, when you look at the budget you’ve currently drawn up, do you see these elements? If not, it’s time to get back to the drawing board!

 

3 Tips on Reducing Your Debt

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Having debts is a tough situation many people face at one point or another in their lives. Until these arrears are settled, your financial liberties may be limited for several things you wish to do for yourself, your business, or your family. In a 2019 report by Dave Ramsey, it was revealed that 80% of Americans have chains of debts to deal with. Are you interested in knowing some tried and tested ways to reduce your debt? Please read on.

  • Reduce the number of credit cards you own

Credit cards work on the concept of borrowing funds to pay for goods by use of an electronic card. The more cards you own, the higher the propensity to buy more things you’re not in a position to pay for now. That adds to your mounting debt, which ultimately puts you in the worst situation.

According to the American Banker, borrowers’ debts have continued to rise since 1994, and this statistic doesn’t seem to be going down. The financial expert website also stated that about 60% of the American population live off their credit cards, making this battle a downhill struggle. However, they recommend canceling multiple credit card usage and limiting it to only one. The psychology behind this move is to prevent cardholders from splurging on unnecessary purchases.

  • Seek professional help

In many cases, seeking professional help to resolve debt issues is the best way to go. Although some debtors will seek expert financial help, others prefer to go the legal way. Finding an establishment such as the Boulder Legal Group presents an opportunity to consider other lawful options you can explore.

For instance, your attorneys may recommend declaring bankruptcy to reduce some hefty debts depending on your peculiar situation. Remember that you must prove beyond all doubts that you can’t fulfill your financial obligations before this option can be granted.

  • Consolidate all existing debts

Debt consolidation is the process of putting all your debts into a single loan. This allows a debtor to begin to repay their existing debts on a monthly basis. The excellent thing about debt consolidation is that it tends to offer lower monthly repayment rates. Moreover, many borrowers seem to like the option this gives them. For instance, you get to decide and settle on how much you’re comfortable paying back monthly.

If you’re unable to do this calculation on your own, a debt consolidation calculator works well in this regard. Depending on the payment plan arrived at, the chances of repaying over a longer period are high. Although this, in other words, means an extended payment plan, it presents an opportunity to commence paying off debts in a timely and more organized manner.

How does this strategy impact your short to long-term financial plan? This question may be difficult to answer because of the variables involved. However, most people (debtors) prefer to increase their income streams to avoid creating the financial vacuum associated with debt consolidations.

Applying these practical tips will help you reduce your debts and get back on track financially.