Being stuck between jobs puts you in a kind of money limbo, but you needn’t get stuck there. Our simple five-step plan could help you to better manage your money until you’re ready to jump into your next big adventure.
1. Review your spending
We all splash out a little now and then. But when you’re living on a budget, cutting out unnecessary expenses is key to staying on top of your finances.
To see where you’re over-indulging, take a look at your bank statements and highlight any miscellaneous outgoings – £4 for a coffee here, £6 for a lunch there, you know the deal.
Figuring out where you’re spontaneously spending will quickly show you where you might be able to cut back. You’ll also be able to see any subscriptions or memberships that you’re not getting the most from (or had forgotten about).
2. Set a budget
Now you know where your money’s going, you can set a realistic budget. To do this, work out how much you need to live on per month. Here’s a few things to consider:
• Rent or mortgage payments
• Bills – gas, electric, water, internet, TV
• Food and other essentials
Once your monthly budget is locked down, make it official in the Yolt app so you can track your spending – you can even switch on budget notifications so you’ll get alerts when you’re close to your target spend.
Remember, if your budget is too stingy, you probably won’t be able to stick to it – so keep it realistic. Check out our guide for more tips on working out your living budget.
3. Save the pennies
We know it’s corny, but it’s true – every penny really does count. When you get to the end of the week and you still have some money left over, don’t just carry it into the next week, put it aside.
Even better, put those pennies straight into your Yolt Money Jar. Jar Boosters can help fast-track your savings, automatically stashing spare change so you don’t even have to think about it.
4. Find new ways to make money
Still worried about coming up short? There are plenty of ways you could make a bit of money on the side to help bolster your budget.
Maybe you’ve got a wardrobe full of clothes you’ve only worn once. Or some old tech sitting in a bottom drawer. You’d be surprised at how much you could make just by having a good old clear-out.
If you’re feeling entrepreneurial, why not start your own business or turn a hobby into a side hustle? Even small things like tutoring or dog walking can be pretty lucrative.
5. Adapt your lifestyle
Living on a budget doesn’t have to be boring. Just because you’re cutting back, doesn’t mean you have to stop doing the things you love. Think about how you can carry on enjoying yourself while keeping costs down.
If you’re a super foodie who loves eating out, try setting up an at-home supper club with friends and taking it in turns to host. Or if your gym membership is proving pricey, get down to your local outdoor gym for free.
Want more tips on getting your spending habits under wraps? Check out these 7 habits sabotaging your savings.