In celebration of Savings Month in July, what better time to really consider where your money is going.
So you’ve been putting off creating that monthly budget for a while now, and as a result, you often find yourself asking where exactly your money goes before the month ends. It’s time to consider these 5 money traps you may not be aware of.
DELAYING INVESTING
One of the golden rules of investing is to just start – the sooner the better. It gives you the chance to take advantage of the benefits of compound interest, which lets you earn returns on the money you’ve already invested.
SUBSCRIPTIONS
If you were to take an audit of all the subscriptions you have, but are not making the most use of, be it streaming services, online news sites or even that gym membership you haven’t used in ages, you’d quickly realise how much money you’re essentially giving away. Find less costly alternatives such as replacing your gym membership with outdoor sports or adventures.
NOT NEGOTIATING YOUR INSURANCE PREMIUMS
As your insured assets depreciate in value over time, you may want to call your insurer to find out if they can offer a more affordable premium. If not, consider shopping around for a new insurance provider who can give you more value for money or a reduced premium for the same cover.
UNPLANNED SALE PURCHASES
Just because an item is on sale doesn’t mean you suddenly need it. A budget helps you identify your monthly needs and set aside money for the things you want. Don’t make impulse purchases, even when the offer seems too good to pass up.
NOT BUDGETING
Budgeting is a sure way to keep track of your spending. A well-thought-out monthly budget helps you identify where you need to cut back, and allows you to plan for things you may often overlook, like entertainment. Learn how to set up a budget today with these handy tips.
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