Each year brings with it its own financial challenges. The 2020 pandemic caused an upheaval in many people’s ability to manage their financial wellbeing, and although things are different now, lots of people are still feeling the shockwaves from that time. Even if you’ve managed to keep your finances in check up to now, there might still be lots more you could be doing to improve your financial health and futureproof your money to as much of a degree as it can be futureproofed. Here’s how to look after your finances in 2022.
Fix your credit rating
Your credit rating is a major part of your financial health. It determines whether or not you’ll be allowed to take out loans, whether you can get a mortgage on a house, and even whether you’re able to get a job in certain circumstances. If your credit rating is poor, make 2022 the year you improve it. There are lots of surprising ways to raise your credit score; joining the electoral register, paying off debts, and even seeking out quick loans to add repayments to your score can all be great methods. It’s also worth signing up to a free credit checking site so you can keep track of your score.
Create a budget
Good financial health begins with creating a robust, honest budget for yourself. This means combing your financial statements and bank balances to see where you’re spending money and what income you have. Take everything into account when you budget; being honest with yourself will make the budgeting process easier and more useful in the long run. Once you’ve added up income and expenditure, look for places you can lower your spending or optimise the money you’ve got leaving your bank account each month.
Shop smarter
There are many ways you can cut back on spending in order to look after your financial health. For example, try swapping branded shops for supermarket own-brand alternatives; this can save you money, and you likely won’t even notice a dip in quality. Be on constant lookout for bargains and deals, both online and in store, and try to shop consciously rather than on autopilot. Many of us spend much more than we need to during our shopping trips, and the first step to correcting that is simply to pay more attention to the items we’re buying and how we’re buying them.
Switch up your services
In most cases, no matter who your service provider might be – whether it’s for your phone contract, your energy, or whatever else – you could be getting a better deal elsewhere. Many service providers bank on the fact that you’re either too shy or too busy to contact them and discuss the price of your contract, too, so even if you don’t want to switch, it’s worth contacting your providers to ask if you could get a better deal. You’d be amazed at just how many companies will fold as soon as they learn you’re considering taking your business elsewhere.
Cancel unwanted subscriptions
The subscription economy can be somewhat underhanded in the way it makes its money. While many subscription services are on the level, you’ll often find that if you take advantage of trials or discounts, they won’t email you when it’s almost time to renew. This can result in subscriptions staying on your account even if you don’t want or need them anymore. As part of your budgeting process, make sure to look for subscriptions you’re accidentally paying and cancel them promptly. You’d be surprised at just how much this can save you.
Talk to a professional
Your financial situation doesn’t need to be dire or desperate in order for you to get something out of talking to a professional advisor. Even if you just need help assembling your budget or want someone to talk to about optimising your spending, an advisor can be of assistance in this situation. Be sure to read reviews of any company you decide to go with; you never know when businesses are unscrupulous and just trying to swipe your details, so make sure to vet every advisor you consider. The likelihood is that they’re legit, but you should always be sure.
Download a financial planning app
Whether you’re an Android or iPhone user, you’ll find that there are hundreds of great financial management and planning apps to help you keep track of what you’re spending. Whether it’s Emma, PocketGuard, or Goodbudget – or any regional alternatives in your country – there’s no reason not to download a free finance app and start planning better in 2022. These apps will sometimes request access to your bank accounts in order to read your information; check the app is above board (most big names are) before agreeing to this.
Ditch your car
It might sound like a bold step, but one of the best ways to look after your finances is to ditch your personal vehicle. Cars can be incredibly costly; when adding up insurance, MOT, petrol, and any other vehicular expenditures, you can often spend thousands of pounds a year on your car if you’re not careful. By dropping the car, you can use more public transport, which generally works out cheaper. This also has the added benefit of being good for the environment, and if you’ve got further to walk to a public transport station, then it could seriously improve your health as well!