Managing your finances successfully can not only bring your peace of mind but can help you plan for the big things in life. If you have hopes of going on a summer holiday or buying a new car, have a wedding to plan or a new baby on the way, getting you money organized can help you sleep better by making saving easy and not leave you scrimping and scraping for money.
New Car
Whether you need a new car to get to work or just what to treat yourself, it’s a big financial commitment. The average car will cost you over £15,000, not to mention insurance, road tax, and all the added extras.
Setting your sights on a car you really want can incentivize you to get your money in order, but this can often result in people trying to save too much at once and compromising their social life or hobbies to prevent spending their money. But, with a money calculator, you can easily determine how much to save a month based on your annual salary and how long before you are breathing in that new car smell.
Holiday
We all get the winter blues and a sure-fire cure is to count down the days to summer and book a holiday, but they don’t come cheap. A summer holiday will likely cost you a minimum of over £650 and if your smart saving can be painless and quick.
Most holiday providers allow you to pay in instalments so saving is laid out for you. But if not, planning where you want to jet off to in the winter months can give you plenty of time to set aside money to be drinking cocktails by the pool when summer rolls around. Saving based on your salary also means you don’t have to compromise the little things you enjoy and spend money on. Saving doesn’t mean you have to be miserable.
Wedding
According to Compare the Market, the average wedding costs around £32,000 which would require almost everyone to do some serious saving in advance. Saving on payday is best as it allows you to see what money you have left for the rest of the month, taking it away from the total straight away, like tax and national insurance contributions.
Weddings require a lot of planning and saving becomes easier to work out as you know how much you need and by when, allowing you to make more educated assumptions on what corners to cut in regards to your expenses. However, your big day can easily get out of control in regard to money, so it is always best to give yourself some contingency money to fall back on, just to be on the safe side.
New Baby
The average cost of a baby’s first year is somewhere in the region of £11,500. From nappies to clothes and furniture to toys, the list is endless. But you can make sure you are spending wisely without forfeiting what you need.
Having a new baby is exciting and buying clothes and decorating nurseries can cloud your judgment when it comes to your savings. With around nine months to plan for your baby’s arrival, you can use it wisely and start to save for all the expenses that are in the not too distant future.
Once your baby has arrived you will have so many things to do and think about on a minimal amount of sleep, so feeling secure in knowing that you have your finances organised can be one less thing keeping you up at night.