Can Budgeting Help me to Boost my Savings?

If you want to be able to put more money in your savings account, then you may wonder what strategy will work for you and whether budgeting will be something that will help you. It is good to have a think about this because you could find that it will be really helpful for you. It is something which could help you to put together a strategy for saving.

You will see What Money you Have

You will be able to start by looking at how much money you have. You can keep better track of what you have saved up at the moment as well as what you earn and this will help you to get a better idea of your status. Knowing this is only one step though as it is also important to know what we pay out on things as well.

You will See What Money you Pay Out

You will also be able to clearly see what money you pay out for essentials and non essential each month. It is a good idea to think about what is essential and what is not as well. You will have to pay out for essentials still, but you might be able to cut down on the non-essentials and this will enable you to free up more money which could be used for saving. It could also be wise to think about the amount of money you are paying out for different things at this stage. Even with non-essentials you might be able to pay out less if you buy things from cheaper places. It can be worth comparing prices to see whether you should be switching so that you can buy things for less.

You Can Allocate Money to Save

Once you can clearly see what is going on, you will be able to allocate money to save. This means that you will be able to see what money you have available after paying for your essentials and you will be able to decide how much of this you want to put into your savings account. It could even be a good idea to set up a regular transfer after you get paid so that you are able to be sure that the money will be put into your savings account. You will then be able to know that the money has been saved and that there will be no risk that you will accidently spend it on other things. You will also be able to keep track of your spending on non-essentials to make sure that you keep this low enough to leave enough money to save as well.

It can make a big difference to the amount you save. Often people will just put money in their savings account if they have any left at the end of the month. However, as we have money available to spend, we will often just spend it because it is there are then there is very little left to save. By budgeting carefully and limiting our spending, it means that we will have more money left to save and therefore we will be able to more quickly build up the amount of money that we have saved up. So, budgeting can be extremely helpful when you are trying to increase the amount of money that you are saving. You will be able to keep a much better track of what is going on with your finances and know that you will be able to save more money and really boost the amount that is in your savings account by doing this.

Will Budgeting Help me?

You may wonder whether sticking to a method of budgeting will help you or you may wonder whether it will just be a waste of time and effort. It is a good idea to think about the advantages of budgeting to help you to make up your mind.

  • Helps you to Clearly See What is Going on – by looking more carefully at your finances, you can more easily see what is going on. You can see how much you get paid and how much you are spending on things and it will mean that you get a better idea of what money you have and where it is going. This will immediately help you to feel more in control of your money as you know what is going on with it. It can help you to realise where you are spending as well as sometimes you may wonder where all of your money goes.
  • Makes it Easier to Manage Your Money– If you can see what is going on more clearly this is very helpful. Also, if you plan on what money you need to spend in different areas, then you will be able to manage it much more easily. Once you have worked out what you need to cover all of your costs, you will then be able to see what is left to spend on other things. It will mean that you will know exactly what money you have available to treat yourself to a few things and you will not have to worry about spending more than you can afford.
  • You Can Plan Things Better – if you are hoping to repay a loan or put money in a savings account, then having a budget will help you with this. Knowing how much money you need for essentials and then allocating yourself a certain amount for luxury items means that you will then be able to control what is left to be able to use for other things.

You can therefore see that there are a lot of advantages to budgeting. Whether you are struggling for money and want to make sure that you have enough to pay your bills or you have enough to pay your bills but want to put more in savings accounts, then you will benefit from budgeting. Consider, what situation you are in with regards to your money and whether it could help you to budget.

It is worth noting that it does not have to be really strict. If you are struggling to make ends meet then being strict might be necessary but if you are trying to repay loans early or put more money in your savings account then you can be more flexible. You could just decide to allocate a bit of money towards these things and know that you will still have enough for everything else as you have a good awareness of what things cost and how much money you have.

If you are not planning on saving more or paying off loans and you are managing your money well, then budgeting may not be necessary for you. Most people though, feel that they would like to be doing more things to help their financial situation and could find that budgeting will benefit them. Even taking some time every few months to check your financial status and how well you are coping, could be very useful to everyone. It will not take long and it is a useful thing, just to make sure that you are doing things right. Costs change and so it is good to check what you are paying or things every so often so that you can make sure that you are still managing well and have enough money to cover everything that you need.

Should I Stick with one Bank?

There are many of us that are loyal to certain brands and this could extend to banking as well as other items. However, there are other people that switch about a lot and even have different financial products with different banks. It is a good idea to think about the pros and cons of both of these approaches and then you will be able to decide whether you think that one or the other is good for you both with regards to all products as well as with specific reference to banks. Some advantages and disadvantages of sticking with one bank are listed below for you to consider.

Advantages of Staying with One Bank

  • You will know the bank that you are with and what to expect from them. This means that there will be unlikely to be any surprises when you are dealing with them. This can be reassuring.
  • You might also trust them and like the products that they offer and feel that they cannot be improved.
  • You may also like the way that you can deal with them whether that is in branch, over the phone or online.
  • If you want a new product, they will not need to do an ID check which means that it will be faster for you to get it.
  • You may also feel that they will be more likely to lend to you as you are a current customer.
  • Having all of your products in one place can also help you to more easily track them and budget. You will have just one login for online banking or one branch to visit and this will make it much easier to know what is going on and with what products.

Disadvantages of Staying with One Bank

  • If you do not look elsewhere, then you could find that you are missing out on some much better deals offered by other banks. They might pay better interest on savings or have cheaper loans and you will be missing out and not getting that high interest and paying too much when you borrow.
  • You may find that other banks actually have a better customer service than yours and are more polite and friendly to deal with and respond more quickly to queries.
  • It could be the case that even though you think that you are dealing with your bank in the most convenient way there are actually better ways to do it that other banks offer and yours does not.

It can be daunting thinking about moving everything over to a new bank, however, this may not be necessary. However, you could find that you will not need to do this but it might just one or two products that you will better off taking out with a different bank. Even if you will have to move everything it can be easier than you might think. Banks have to help you with this and it therefore should be the case that things get moved over more efficiently than you might expect. It is well worth calculating how much you will gain from doing this and then you will be able to decide whether you think that it is worth the effort of moving the items to a different bank. If you find that it makes a huge difference then it is likely that you will change your mind about not moving and will think it is worth the effort but if the difference is small then it is likely that you will not bother. However, check first and then see how you feel about it.

Can I use Payday Loans for a Rent Deposit?

If you need to rent a new property, then you will need to pay a deposit. This means saving up a sum of money and it is not always easy to do. If you are currently renting and you are moving, you could find that you will not be able to get back the deposit on the place you are in until you have moved out and it has been inspected so you will have to find an alternative sum of money for the deposit beforehand. This is not always easy to find and so you may be thinking about borrowing the money in order to pay for it. This can seem like a good solution but there are potential risks and it is worth thinking about these before you decide whether to go ahead with the idea or not.

May not get Deposit Back

If you do not get your deposit back form your previous property and you were relying on using that to repay the money that you have borrowed, then you may struggle to repay the loan. Therefore, it is wise not to rely on having that money available to you to use, but make sure that you have an alternative plan to be able to afford the repayment. Think about whether you can sell things to make money, earn a bit extra or spend less elsewhere so that you will have enough. Actually do the maths and work it out, so that you can be confident that in the case of you not getting your deposit back, you will still have the money available to repay the loan.

May Struggle to Pay Rent and Repay

If you do not have a deposit to use to repay the payday loan, then you will have to find the money elsewhere. It could be really difficult to find it when you are having to pay rent as well. This could particularly difficult if you are moving out of your parental home and you are not used to budgeting and do not know what to expect with regards to the cost of paying bills. Therefore, it is really important to make sure that you check carefully whether you will be able to afford it. Make sure you find out how much bills are likely to cost you and this should help you to be able to check carefully whether there will be enough money to cover the bills, rent and loan repayment.

There Will be Costs

Whenever we take out a loan, we have to pay for it. Loans differ in cost and it is really important to make sure that you work out how much the loan will cost you and then you will be able to work out whether you think it will offer good value for money. There is the alternative of saving up the deposit and delaying moving which will be a lot cheaper and so is well worth consideration.

May Impact Credit Record

It is also worth noting that when you borrow money it will show up on your credit record. Although this one instance may not necessarily be seen as a bad thing. If you miss a repayment it almost certainly will and could impact the likelihood of you being able to borrow in the future and perhaps may mean that it will be hard to move house as landlords do a credit check and it might even put off potential employers. So, it is a really important thing to get right and so you need to think really hard about it and whether the pros and higher than the cons and therefore whether the risk is worth it.

Should I Use a Quick Loan to Cover the Cost of Christmas?

Christmas s often a very expensive time of year. What with buying gifts, food and cards and then the additional costs of postage, decorations, new outfits and other things it can really add up. There often feels like there is a lot of pressure to spend a lot as well as we can almost be made to feel that without buying lots of extra things it will just not be the same but then we have to find the money to do this. Some people will consider borrowing and some people always borrow money. If you are considering borrowing, it is really important to choose the right sort of loan. Perhaps you are considering a quick loan as you have left things a bit late? If so, make sure that it is the right choice for you. There are a few things that you need to consider before you take it out.

  • How Soon it has to be Repaid – it is worth being aware that most quick loans will need to be repaid when you are next paid. Some people get paid early in December, which means that you may have to repay it before Christmas. If you do wait until you get paid after Christmas, it is likely to still be fairly tricky to find the money. You will be likely to only borrow for a few weeks as well and so this is not very long to have to last until you have to repay it all. Often you will have to repay everything that you have borrowed and the fees all in one go as well, which means you will have to find a lump sum of money quite quickly after borrowing.
  • If You Can Afford the Repayment – it is really important to make sure that you are able to afford the repayment. Find out how much you will need to repay and when and you will be able to work out whether you will be likely to have enough money to be able to afford it. It is good to actually calculate how much you will be paid and what you will have to pay out for and see whether there will be enough left to make the repayment. If you do not make the repayment you will have extra charged to pay.
  • How Much you Can Borrow– it is a good idea to think about the fact that most quick lenders will only lend you between £100 and £1,000 and you need to think about whether this will be enough money for you. Also consider the fact that if you are a first time borrower then you may find that a lender will not allow you to borrow so much. Often, they will want to find out whether they can trust you first by lending you just a small amount of money. If you are able to repay this, then they will be happier to lend you more.
  • The Cost – It is wise to find out how much the loan will cost you. You will need to think about whether it offers you good value for money or not. There are lots of factors as well as cost that might influence your decision, but it is a good idea to start with finding out the cost and thinking about whether you think that the loan is worth this money. This will be a very personal decision, but it is one worth thinking hard about because it could mean that you will get a much better borrowing experience if you choose the one that offers the best value for money.