How to be financially successful

Whether you are working as a freelancer or as part of a larger company, it is important that you take control of your finances in order to be successful. If you know you struggle with your finances, it is important to make some changes to improve your financial plans for the future. Making small adjustments to your expenditure each month can help you to save and manage your money more effectively.

Here are some top tips for financial success:

Make Goals
Looking over your finances and creating clear, identifiable goals is a great start to becoming successful financially. If you are planning on saving, it’s best to have a date in mind which will ensure that you meet your financial plan. Managing and monitoring these goals is a good way to track your progress and will give you an idea of how much you need to save each month. Online banking services now offer you the option to create saving plans which will help you to manage your earnings each month.

Reduce your Debt
Paying off a credit card is one way that you can reduce your debt, as leaving it could cause the interest to increase which will make it harder for you to pay off. Often we are made to think that paying on a credit card can save us money or help us to receive a discount but in reality we could be spending more money than if we paid the full amount in cash.

Investment
Why not invest any of your spare savings in to something that you feel will be profitable in the future? This way you are doing something useful and cost-effective with your money as opposed to it being sat in your savings account.

Budgeting
Sticking to a budget will ensure that you have saving goals in place and will allow you to see where your money is going. Using online banking is also a great way to track where your money is going on a regular basis.

Spend less than you Earn
Although this is a pretty basic rule, it’s important that you take account of what you are spending and make sure that you are spending less money than you receive in your wages each month. After every payday it’s easy to go on a wild spending spree, but it’s best to evaluate your finances first to ensure that you do not get stacked up with unnecessary debt. Saving half of your wages and spending half each month is a good way to start.

Retirement
Depending on what age you are, it is wise to start planning for the future by thinking about saving up for retirement. The government are looking to make cuts in many different areas so it’s wise to have a back-up plan and a substantial retirement fund in case you don’t get the money you are hoping for when you finally leave your job.

This article was provided by Nixon Williams; one of the leading accountancy practices serving freelancer contractors and helping with IR35.