How to optimise your finances in 2020 to make them go further 

Finding your salary isn’t going as far as you’d like it to each month? Shift things up in 2020 by taking a look through these quick tips on how to optimise your finances. 

Shave off unnecessary payments 

A classic and simple technique that will surely save you a few pounds, to begin with, is to comb through your scheduled payments, bills and financial commitments that are no longer relevant. Most of us have at least one or two outgoing payments for a product or service that we’ve forgotten about or no longer use, and so streamlining these payments can be a great help down the line. It might not seem like much at first, especially if you don’t even notice it coming out of your account, but being lackadaisical with your wasting is how it runs out, and so keeping a keen eye on money will add up in due course! 

Tip – If you’re bad at saving your money and are looking for an easy, effortless way to get started, switch out any cancelled direct debits you’ve sourced after forgetting about and swap them in to direct debits to an independent savings account. You won’t notice any difference in your outgoings since you were paying out already anyway, and this way it’ll actually be going towards something eventually worthwhile rather than down the drain. 

Save and invest your money for something greater 

If you feel like you’re struggling to make your money go very far, then cutting back on impulse spending and focusing in on long-term purchases might help you to get in a savings mindset. For inspiration on some of the different routes you can take, there are plenty of challenges from bloggers and financial trendsetters, such as the 30-day savings challenge, for example. However, if you feel like using your smartphone to help you save, The Big Investment blog has a helpful piece on the top financial/savings apps to try out. 

Those that already have a sound financial buffer and platform in 2020 might wish to spring themselves off it and use the money that they’ve saved away to help make them even more. This is where investment comes in. Rather than saving away your funds for a rainy day, consider putting your capital into an additional project, such as property investment, for example. With this strategy, you can get yourself a physical asset that will stand the test of time, benefiting from house price growth over time if in a good area, and receiving regular rental payments if renting out the place to a tenant. For more information on how this particular process, check out the RWinvest website, and some of their in-depth videos, podcasts and guides

Establish a secondary income stream 

As mentioned above, purchasing a buy to let rental property can be a great way of establishing yourself an extra income stream on the side of your primary job. In some cases, it can actually become a full-time gig in and of itself, but what if you don’t have the relevant capital available to invest? Well, maybe you should consider putting some productivity behind a passion project, and monetising it to the best of your ability. Whether you’re an artist that sketches for fun or a blogger that loves to write about their favourite pastimes, these sorts of transferrable skills are always in demand on sites such as Fiverr and UpWork, and you can complete tasks at your own leisure when you fancy a bit of extra cash to help get you through a dry spell!    

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