Rediscover romance with your finances this Valentine’s Day!

Valentine’s Day is almost here again and love is already in the air. But instead of focussing on romantic gestures for your partner this year, why not take a moment to show some love to your finances? Greg Potter, Head of Member Experience at Leeds Credit Union, shows us how.

Saving

Whether it’s to help keep you safe for an emergency or to help you afford a big ticket item like a car, most people are aware of the importance of regularly putting money aside. But with the current cost of living putting a significant strain on many people’s finances, how can you start saving money now if you weren’t already doing so?

The quick answer is reduce your outgoings wherever possible and save the difference. Begin by working out what you’re spending money on, identifying what you can do without and then start saving that money instead.

Take a look at what subscriptions you have, whether it’s Netflix, Amazon or ‘bolt-ons’ related to your mobile phone and if you can live without them, cancel them and start saving what you would have spent. Even if you only save a few pounds per week, it all adds up!

Debt consolidation

If you have several loans and/or credit cards to your name and are having a hard time keeping up with the repayments, it might be worth combining them all into one loan.

Known as a debt consolidation loan, this type of loan involves you borrowing enough money to pay off your current debts from a single lender, which helps you reduce your monthly outgoings and allows you to take back control of your finances.

Budgeting

Creating a budget is a fundamental step towards better financial awareness, so take the time to assess your income and outgoings, prioritising essential costs while also allocating funds for savings and leisure activities.

By sticking to your budget, you’ll avoid overspending and be well prepared if any unexpected expenses appear without warning.

Online banking

Although the vast majority of credit unions and banks still have branches which customers can visit in person, online banking is now the most popular banking method in the UK.

As well as being incredibly secure, online banking delivers a raft of other benefits including providing 24-hour access to your accounts, whether at home or out and about, via your bank’s website or app. It also enables you to carry out transactions, such as transferring money, almost instantly, all via your smartphone, tablet or laptop, making it easier than ever to keep track of your finances.

Open dialogue

Discussing your personal finances more openly improves your financial and mental wellbeing so, if you’re having financial difficulty, talk to somebody about it.

Studies indicate that talking about money makes you feel better about it and helps you build healthier money habits, such as saving more regularly and making less risky financial decisions.

In addition, talking about money reduces stress and anxiety and strengthens relationships.
Whether you choose to talk about your finances with your partner, family or friends, broaching the subject is an excellent way of getting to grips with your financial situation.

 

Leeds Credit Union provides straightforward and affordable financial services to people in Leeds.

Photo; Shutterstock

 

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