An English proverb which advises people to plan ahead while they have the resources and the ability to do so.
This also applies to your finances.
Recently in the news, it was reported that Britain’s cost of living worsened in December with inflation rising to an all-time high of 5.4% in 30 years. This has been driven by the higher cost of clothes, food and footwear. Eating out and prices of furniture have also increased.
There is pressure from the Bank of England to raise interest rates. They also expect the Consumer Prices Index (CPI) to rise to 6% by April.
What does this mean for you?
Planning ahead to accommodate the rising costs for food, clothing, household bills to name but a few has become more important than ever before.
M for Money is here to help you along the way. We have a wide range of loans at low-interest rates which can be repaid between 12 to 60 months (depending on the size of the loan). For instance:
- Members saving through a deduction from their payroll are eligible to apply for an Introductory Loan of up to £3,000 repayable over 60 months subject as always to credit and affordability checks.
- Members with equity in their property are eligible to apply for loans of up to £20,000 repayable over up to 60 months subject to affordability and credit checks.
Here are some ways to plan and manage your money:
1. Make a budget and stick to it
“Get everyone in your family involved with keeping to a budget.
Sit down together and make a plan that you can all stick to.
Work out how much spending money is available and agree between you what you’ll each have.”
Learn how to budget from our blog here.
2. Set up savings goals
Whether you want to save money for emergencies, a special occasion, job loss or family matters, its always a good idea to have a saving goal to keep you on track and motivated.
To learn how to set goals, read our blog.
3. Check in on your finances on a daily basis.
This may sound tedious however taking five minutes every day to check in with your budget can help you keep track. This will also help you re-adjust your budget if needed.
4. Build an emergency fund
Make it a priority to put money into your emergency fund with each and every paycheck. One of the best ways to do this is through the Salary Saving Scheme. You can find out more here.
5. Planning on a big purchase? Always shop around.
If you are about to make a big purchase, always shop around to make sure you that you are getting a good deal and perhaps negotiate for a better price where possible. In this way, the savings add up quickly.
6. Contribute towards your retirement
It’s never too early to start planning for retirement. You should start contributing to any employer-sponsored retirement plans. Make sure to take advantage of any matching funds offered by your employer.
If you don’t know where to start or need financial advice, then here are some organisations that can help you.