A new year is always a good time to take stock of where you are and what you want to achieve in the coming 12 months. What has happened during the last 12 months? How has this affected you and your family?
If 2009 has not been a good year financially, and for many people in the UK that is the case, then now is the time to take control of your finances and make sure 2010 is going to be a better year.
A good place to start is by looking at your bank statements and seeing where your money is going. Make a note of all of the fixed costs, such as mortgage/rent, council tax, loan repayments and other bills and add them up. Also calculate your total monthly nett income. Hopefully your income exceeds your fixed outgoings and the figure left is your disposable income.
This disposable income is used for your shopping, treats etc. Do you have enough left to cover everything you need to buy? Are you spending money on something that you could do without?
If your income does not cover your outgoings then you have two choices:
- Increase your income
- Reduce your outgoings
If you don’t do one or the other then you are going to be considerably worse off during 2010 and could get yourselves into financial trouble.
For a variety of reasons these options may not be available to you and it might be that a loan or debt solution would prove a better option.
Are you making repayments on a number of loans and credit cards? If so your monthly repayments could be cut by consolidating all of this debt. This may result in paying more in the long run but in the short term could reduce your monthly outgoings considerably and allow you some breathing space.
If your situation is worse still and you are struggling with a large amount of debt (eg. £15,000 plus) then a debt management option may prove helpful to you.
Whatever your circumstances Financeworx personal finance are here to help. Wishing you a happy and prosperous 2010.