Money Tips To Beat The Credit Crunch

As we’re all being hit by the current credit crunch – markets are going into free fall and people are now suffering from an age of overspending and easy credit. I thought it would be timely to share a few of my money tips.

If you’re not sure where your money goes each month then write a money diary for the next week. Make a note of everything you spend each day and then add it up at the end of the week, so you can see exactly how much you spend even on the little things – your daily newspaper, snacks as well as bills paid, cash withdrawn.

Use cash or debit cards. If you know the money is going to come straight out of your bank account, you’re less likely to spend excessively. Credit cards only have to be paid for later and while the ‘easy monthly payments’ may seem tempting you’ll end up paying a lot more for the goods that you buy. Get into the habit of only spending money that’s actually yours … not someone else’s like the banks or the credit card companies.

Get onto Ebay, post local ads, go to car boot sales and sell what you don’t need to boost your funds. Recycle what you no longer. Buy second hand rather than new and save money or even better look at getting something repaired rather than throwing it away and buying new. Sometimes repairing something might be more expensive than buying new but it’s always worth checking and there are people who are happy to ‘fix’ things.

If you don’t have one already, create an Emergency Survival Fund. This is a pool of savings that you can dip into should an emergency arise – an unexpected bill or repair or if you were to lose your job. It should be equal to the amount that would cover all your basic financial needs (mortgage, rent, utility bills, food) for a minimum of three months.

Buy what you need, not what you want and as the saying goes waste not, want not.

If you’d like more tips and strategies for improving your finances – take a look at my e-book – More Month Than Money.