Rebuild your financial status

Achieving financial fitness is simple with these tips

07:59 01 April 2014

It is time to start thinking about how to save money in ways that will work better this year. Being financially fit is not as complicated as some people like to make it.

There are practical things you can do to start your year on a better financial note, all you need to do is to commit. Here is how you can start rebuilding your financial life:

• Have realistic financial goals

Define your financial goals. You will not know what you really need to do unless you have a vision and a plan. If you want to get out of debt, be realistic about how much debt you actually have and then set an amount and a plan you should take to get to that amount.

• Be responsible with your credit card

It is easy to let your credit card spending get away from your control especially if you use your credit card for simple things that should have been in your budget like groceries. Remember that the money in your credit card is not yours, you will have to pay it back with interest so rather spend what you can pay back in full at the end of the month.

• Save money for emergencies

It is important to put aside some money for emergencies like car repair, unexpected bills, and sudden loss of income. It does not have to be a lot of money, just a small amount to start building the saving habit.

• Skip the luxuries and save money

You might have a £4 latte habit but instead of spending all that money at the coffee shop, maybe you should buy your own latte machine and make your own. It might be expensive to buy at first but it will pay itself off in time considering that you will not have to spend all that money somewhere else.