Greater financial freedom could help you reach your personal goals at a quicker pace, lower your stress levels, and maximise your spare time. Yet, you might be making silly money mistakes that are draining your bank balance or lowering your retirement fund.
Boosting your cash flow could banish debts, increase your pension pot, and help you buy a more luxurious home or car. Read these five clever tactics for growing your finances.
- Request Tax Rebates
Top up your finances by applying for one or more tax rebates. You might be missing out on money you’re legally entitled to receive. For instance, if you need to wear a uniform at work, you could claim a tax rebate to cover the cost of washing and repairing it. Many professionals wearing different uniforms are entitled to a uniform tax rebate, such as nurses, firefighters, pilots, ambulance staff, or employees with branded uniforms.
- Ask for Some Breathing Space
If you’re finding it hard to make debt repayments each month and need a little extra time to organise your finances, you are legally allowed to request a break from paying interest on a specific debt. The UK government Debt Respite Scheme provides those with problem debt with legal protections against creditor action for 60 days. You could then use this time to build up your finances to make future payments on schedule and without worry.
- Open Different Bank Accounts
Don’t make the mistake of sticking to one bank account. Opening multiple accounts can separate your expenses, which will help you take greater control of your spending. For example, you could have one bank account for paying bills, one for paying for leisurely activities, and a savings account for building a healthy rainy-day fund. Also, various bank accounts will ensure you don’t miss out on excellent packages, exclusive discounts, or deals.
- Set a Daily Spending Limit
If you are guilty of splashing out on clothing, gadgets, or social activities each month, consider setting a daily spending limit on your bank card. Many banks provide this service to prevent account holders from overspending.
A daily spending limit will cause you to think twice about adding an item to a physical or virtual shopping cart, which will protect your finances. As a result, you will be more likely to pick up products you need and less inclined to buy unnecessary items that will sit in a drawer, gather dust in a closet, or end up in a recycling bin.
- Improve Your Skills
Many people unnecessarily spend money on services they can complete, which can drain their bank balance throughout the year. Rather than hiring a plumber to fix a leaky tap, a tailor to mend a broken zip or a painter to decorate your home, make it your mission to complete the tasks yourself.
Master many skills by reading textbooks and watching YouTube videos. All you may need is some research, patience, and confidence. A commitment to DIY could save hundreds or thousands of pounds throughout the years.