This post is sponsored by RW Invest North.
Many of us will come across money issues from time to time. Whether you’re
struggling to pay your bills each month, or you’d just like to have more expendable income, it’s common to seek out ways to boost your finances. While it does take commitment and sometimes a bit of risk, there are some steps you can take to make your finances go further. Take a look at these five steps towards better financial freedom.
Establish your financial goals
Before changing your money habits, you need to first think about what financial freedom means to you. To a lot of people, financial freedom means having some money left over after you’ve paid the bills or having a substantial emergency savings account.
If your financial goals span further than this, such as buying your dream house or car, or paying for a big event like a wedding, make sure you’re clear on what these goals are. Knowing what your financial goals are will help you create the best plan to achieve them, being more aware of how much cash you realistically need to generate.
Build your financial knowledge
The more knowledgeable you become about financial aspects, the better equipped you will be to meet your goals. Learn more about finances in whatever way you can, whether that means through books, financial blogs and websites, or informative podcasts.
Before taking any financial advice or facts to heart, however, make sure they’re accurate. Usually, if the information has come from a trusted source, then this is a good indication that what they’re saying is correct. Sites like Money Saving Expert are a good source to use, with practical guides that can help you with everything from cost-cutting to reclaiming taxes.
Investing is one of the most effective ways to take your finances to the next level,
and when done right, it can help you grow your income significantly. There are lots of different investment routes you could go down, but if you want to benefit from two types of returns, property investment should be your go-to choice.
Property investment is so popular as it helps generate regular monthly returns through rental income. It also has the potential to produce attractive returns later in life if the property’s value has grown by the time you sell it. Like with any investment, it’s important to do your research prior to purchasing a buy to let property. Some opportunities will offer better returns than others, so make sure you seek out investment properties with high rental yields in areas with the potential for capital growth.
In the UK, Liverpool and Manchester are your best options, with investments offering some of the highest average yields in the country, plenty of tenant demand, and the best rates of house price growth. Look for investment opportunities with trusted companies like RW Invest, who offer plenty of properties with rental yields of up to 7 or 8 percent.
Make monthly budgets
Budgeting might sound restrictive, but with the right planning and preparation, it can help bring a lot more freedom when it comes to your finances. Once you have a better idea of what your money is being spent on each month, you’ll know about the things that you can easily cut down on. For instance, you might find that you’re spending too much on your weekly shop and wasting the majority of the food you buy. Budgeting your money and being more mindful of your spending habits can really make a difference to your financial freedom, leaving you with extra cash to contribute towards your goals.
Sort out your savings
The fifth and final tip when it comes to better finances is really getting to grips
with your savings. No matter how much or little money you have, you should always make an effort to save. Saving is not only needed for a rainy-day fund but also to help towards your financial future.
Make an effort to sort out your savings and ensure you’re regularly transferring a sum of money into a separate account. To help you remember, consider setting up a direct debit payment so that some money goes straight to your savings account each month.