Five ways to effectively manage your finances (and get travelling sooner!)

We all want to be in a good financial position so that we can meet our travel goals, but how do you actually get ahead? Tip: it’s not just scrimping and saving. There are a number of other ways that you can maximise the cash you have coming in, and minimise your expenses. Read on to find out more.

Habit one: Always plan ahead

Many of us indulge in impulse buys, but it’s not a great way to live. Is there something you really want to buy? Plan ahead. Likewise, if you stumble across a good or a service that you think you ‘want right now’, go home and sleep on it. Chances are that it isn’t that important, and you’ll fee differently the next day.

Habit two: Create a budget and stick to it

Budgets aren’t just the domain of the boring and mundane, they are a very important tool for showing us where our money is going, and how effectively we’re saving it. If you don’t yet have a budget, set one up as soon as possible, and maintain it. Check the position of your finances at least every month, and set some goals that you’d like to achieve in the future

Habit three: Actively re-negotiate your loans

If you hold a home loan or a personal loan, how much interest are you paying each month? Many people pay too much, as they could be negotiating a lower rate. Banks want to retain customers, so it’s always worthwhile approaching your loan provider for a discount, particularly if you see a cheaper rate advertised for new customers.

Habit four: Find a good travel credit card

Provided you pay it off in time and in full, a credit card doesn’t have to cost you money. In fact, a good financial product, like a points and miles credit card can actually help you to get ahead as you can earn rewards when you spend on it. Choose a credit card with a reasonable annual fee that provides access to valuable membership perks and a good sign on bonus offer. It’s also advisable to obtain a product which offers a generous ongoing earn rate, such as a good credit card. This will ensure you earn as many points as possible on your everyday spend. One good example of such a card can be found here.

Habit five: Always check and compare pricing

Before you buy something, wouldn’t you want to know that you’re getting it for the best price possible? By using a pricing comparison website and doing your research, you’ll guarantee that you never over pay for a purchase.

Follow our steps above, and get travelling sooner!

Stan is an accountant specialising in personal finance.