Money saving questions to ask yourself in the New Year

Money saving questions to ask yourself in the New Year

Hoping to save the pennies in 2015?

If you plan to use the New Year as a chance to think about changes you want to make, then it’s well worth considering how sorting out your finances could help your money go further in 2015.

We spoke to the Money Advice Service, who say these money saving questions will help get you started…

Do you know the balance of your bank account?

It’s really important to keep track of what money you have, and a budget will be able to help you do that. It will give you a snapshot of your finances by showing what money you have coming in, what money is going out, and most importantly, how much you have left at the end.

You can use the budget planner on the MAS website to make an accurate budget in just 10 minutes which you can export to a spreadsheet, or print off to keep track at home.

Do you have savings for emergencies?

If you can save just £3 every day you’ll have a £1095 emergency fund by the end of the year. Money Advice Service research showed that 70% of households face an unexpected cost in a year, so this will help you avoid getting caught out.

Do you put money into savings rather than paying off debts?

The interest rate you pay on debt, such as a credit card or loan, is likely to be higher than the money you could earm in an ISA or other savings account.

That means once you have some funds for emergencies, start paying off your most expensive debt first, and keep going until they’ve all gone.

All information accurate at time of publication.

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