Of course, it’s that time of year when some people splurge their savings and book a holiday. Are your money muscles in shape for the beach? Or, are they still catching up from that impulse purchase ‘you couldn’t possibly live without’? Whatever your savings situation, try not to panic! There are always ways you could improve it – even with only eight weeks until the start of peak summer holiday season.
Keeping on top of your finances is just like keeping on top of physical fitness – both take hard graft and neither give instant results. You have to be disciplined, play the long game and be honest with yourself!
There’s no point in fibbing to your personal trainer about what you’ve been scoffing – it only hurts you in the long run. Likewise with your finances, it’s no good splashing the cash as you tell yourself it’ll ‘be just fine’. ’ – you have to get real about your goals and what you need to do to reach them.
The good news is it’s all in your control to make the necessary changes to get financially fit! If you’re unsure where to start, we’ve put together some tips to help you start coaching your bank balance into healthy shape:
Put at least 20% of your income toward financial priorities
It may seem like a lot, but if you can hit the target (or get close) you’ll likely be in better shape to take off on the holiday you really deserve. Whether it’s paying off debt or filling your rainy day fund, saving a fifth of your salary will go a long, long way.
Create a mood board for your money
Much like your gym sessions are inspired by your ideal fitness level, you could help motivate yourself to save by creating a vision board. Fill it with reminders and pretty pictures of what you’re saving for. Just looking at it could help you stay on track.
Create a financial calendar
Take a look at your year – think about where your money is going to go and what social events you have planned - then budget appropriately. Breaking down the year into more manageable milestones while reviewing the bigger picture could help you get a sense of what you can and can’t afford to do, and help you stay focused on where your money needs to go.
Check interest rates
Whether it’s paying off existing loans, taking out new ones or finding the best savings account, interest rates should be your guiding light. It will depend on your own situation, but paying off high interest loans first and opening a savings account with the best interest rate could help get you on the way to flexing your money muscles.
Actual exercise - yes really!
Working out more leads to being paid more as you tend to be more productive after you’ve worked up a sweat. A study revealed that those who exercised regularly earn approximately 9% more than those who do not. So, taking up running might help you raise your game – both physically and financially.
If, with eight weeks to go until the summer holiday, the idea of getting financially fit feels more of a marathon than a sprint - get yourself ready for Coach B! He’s super sporty, spends smartly, is saving savvy and could help you take control of your finances. He doesn’t just want to help you pack that suitcase and jet off to destination bliss. Coach B and his team are here to help you learn how you could manage your money on a daily basis, look at savings you could make in your home, and see how other people look after their money. They might just inspire you!
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