How to Take Care of Your Finances During a Difficult Year

But sometimes, more than the standard advice for saving money is needed. Here are some strategies to help you navigate a challenging year and take control of your finances. We talked to Tom Church, Co-Founder of LatestDeals.co.uk, to ask for some pieces of advice: 

Start with the basics

Before diving into unconventional strategies, reviewing some common tips for saving money is essential. These include:

• Creating a budget: Write down your expenses and income, and identify areas where you can cut back.
• Cutting unnecessary expenses: Cancel subscriptions you don’t use, eat at home instead of dining out, and look for ways to save on utilities.
• Earning extra income: Consider taking on a part-time job, trying different ways of making money online or selling items you no longer need.

Challenging common assumptions

While those tips are helpful, they’re not the only ways to save money. In fact, some commonly held beliefs about personal finance may be holding you back. Here are a few examples:

• Invest during a recession: Many people pull their money out when the stock market dips. But historically, investing during a recession has led to higher returns in the long run.
• Avoid high-interest debt: While it’s generally a good idea to avoid debt, not all debt is created equal. In some cases, it may make sense to take on high-interest debt if it allows you to make an intelligent investment or pay off a low-interest debt more quickly.
• Prioritise experiences over material possessions: We often think buying more things will make us happier, but studies show that adventures bring us more joy in the long run. Instead of buying things, consider investing in experiences like travel or hobbies.

Tom Church, Co-Founder of LatestDeals.co.uk, says: “One of the biggest misconceptions in personal finance is that it’s all about cutting back and being frugal. While those things are important, they’re not the only strategies you can use to save money. Sometimes, taking risks and investing in yourself can pay off big ways.”

Highlighting unconventional strategies

Now, let’s look at some genuinely unconventional strategies for saving money. These may not work for everyone, but they’re worth considering if you’re looking for something new:

• Join a “buy nothing” group: These groups are popping up worldwide, and they’re exactly what they sound like. Members offer items they no longer need; others can claim them for free. It’s a great way to reduce waste and save money simultaneously.
• Embrace minimalism: The less you own, the less you spend on maintenance and upkeep. Plus, minimalism can help you focus on what really matters in life.
• Start a side hustle: Instead of taking on a traditional part-time job, consider starting a side hustle that capitalises on your skills or passions. Whether it’s freelance writing, pet-sitting, or selling handmade crafts online, there are plenty of ways to make extra money on your own terms.

Tom Church, Co-Founder of LatestDeals.co.uk, says: “One of my favourite strategies for saving money is to find creative ways to earn extra income. Starting a side hustle can be a lot of work, but it’s also gratifying. You get to be your own boss and do something you enjoy while making money on the side.”

Addressing mindset and habits

Finally, addressing how your mindset and habits impact your ability to save money is essential. Here are a few tips:

• Cultivate healthy habits: Make saving a practice by automating your savings contributions, setting achievable goals, and celebrating small wins.
• Shift your mindset: Instead of focusing on what you can’t have, try to focus on what you can. For example, instead of feeling deprived because you can’t afford a fancy vacation, focus on the fact that you’re saving money for a rainy day.
• Find community support: Joining a community of like-minded individuals can help you stay motivated and accountable. Consider joining a Facebook group, attending local events, or finding a mentor for guidance and support.

Tom Church, Co-Founder of LatestDeals.co.uk, says: “Your mindset and habits are crucial when it comes to personal finance. If you can cultivate healthy habits and shift your mindset to focus on what you can have instead of what you can’t, you’ll be much more successful in the long run.”

Emphasising flexibility

Finally, it’s essential to acknowledge that financial planning is never one-size-fits-all. What works for one person may not work for another. That’s why it’s essential to remain flexible and adaptable as you navigate your unique financial situation.

Tom Church, Co-Founder of LatestDeals.co.uk, says: “Flexibility is key when it comes to personal finance. You have to be willing to adjust your strategies as your circumstances change. What worked for you last year may not work for you this year, and that’s okay.”

Taking care of your finances during a difficult year can be challenging, but it’s not impossible. By incorporating these tips into your financial planning, you can set yourself up for success. Remember to start with the basics, challenge common assumptions, highlight unconventional strategies, address mindset and habits, and remain flexible. With some effort and creativity, you can take control of your finances and achieve your goals.