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Financial services

Get Serious About Your Money: A Step-by-Step Guide to Improving Your Financial Position

Strategic Insights

— 1 min read

As wages and pensions fail to keep up with the increasing cost of living, it's essential to get a grip on your finances. Clarity about your income and expenditure is crucial for making informed decisions and achieving your financial goals. Here, we'll walk you through a simple yet effective approach to improving your financial position, based on the concept of ALIE (assets, liabilities, income, and expenditure).

Key Takeaways:

  • The first step in improving your financial position is to get organised by tracking all your income and expenditure.
  • Identify direct debits for services you no longer use and cancel them to save money.
  • Review your credit card statements to ensure you're not missing payments, and consider negotiating a lower interest rate with your provider.
  • Make a list of outstanding debts and prioritise paying them off.
  • Organise your assets, including pensions, and consider reviewing your investment options.
  • Cut outgoings by questioning each expense and considering alternatives that offer better value.
  • Increase incomings by exploring opportunities to sell unwanted items online, checking your eligibility for benefits, and considering upskilling or taking on a side hustle.

Statistics:

  • 1 in 5 households in the UK are struggling to make ends meet, according to a recent survey.
  • The average credit card interest rate in the UK is 18.9%, while some providers offer rates as low as 6.9%.
  • 75% of adults in the UK have outstanding debt, with the average debt level being £13,500.
  • The number of people using online marketplaces to sell unwanted items has increased by 25% in the past year.

Sources:

  • [Warren Shute's blog](http://warrenshute.com/finance)
  • [Enhanced Jobs](https://www.enhanced-jobs.co.uk/storage/advice-for-jobs-perspectives-from-experts)
  • [eBay](https://www.ebay.co.uk/)
  • [Vinted](https://www.vinted.com/en/)
  • [Facebook Marketplace](https://www.facebook.com/marketplace/)
  • [Entitled to](https://entitledto.co.uk/)
  • [gov.uk](https://www.gov.uk/)
  • [Fiverr](https://www.fiverr.com/)
  • [Upwork](https://www.upwork.com/)

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