We’ve all seen the news about the current living crisis. Fuel prices are shooting up, energy bills are increasing, and it’s a worry. We get it. So this Local Business Week, we want to help put your mind at ease. We want to make sure you’re looking after your finances! We can’t give you all the answers, but hopefully we can point in the right direction.
There’s many tips online that can help, Martin Lewis for example always has some great tips on ways to cut back.
We realise that when you’re running a business, it can be daunting with everything shooting up.
We’ve liaised with the Electrical Industries Charity who want to ensure that your mental health is well protected during this difficult time that we are all facing.
All of us may experience financial hardship in our lives. While definitions of financial wellbeing do vary, you need to feel you’re in control of your money. A study by SalaryFinance found that the two income groups that are most likely to have money worries were those with salaries of £10,000-£15,000 but also earning above £100,000 a year. All we’re saying, it’s all relative!
If you have money worries, it can have a knock on effect on other parts of your life including sleepless nights.
Here’s some healthy tips from the Electrical Industries Charity. They have some great habits you can try get yourself into:
- Habit 1: Avoid making financial decisions when emotional.
Studies have found people who are sad will pay more for something. Being highly stressed can lead to impulsive or irrational financial decisions. In these situations, merely ‘sleeping on it’ is a much better approach.
- Habit 2: Tune out the noise
Avoid looking at your financial position too much. As a general rule, look at your cash position weekly.
- Habit 3: Just say no
Whether it’s a meal deal instead of just a sandwich or paint protection with your expensive new car, developing a habit of saying no to add-ons, upgrades or special deals stops you spending more money than you planned.
- Habit 4: All pounds are equal
Research shows we treat money differently depending on where it comes from. We are more likely to spend a rebate than a bonus. Adopt the habit of treating all your inflows whether salary and pension increases, tax rebates, bonuses or premium bond winnings the same as core income. This means directing it to the same spending priorities including saving for your future self or reducing debt as core income.
- Habit 5: Forget love Island
Watching a lot of reality TV or exposure to ‘lifestyle’ social media increases people’s sense of inadequacy and insecurity. This is because they don’t conform to their ‘perfect’ lifestyle.
- Habit 6: Replace a bad habit with a good one
Your money habits may be highly ingrained but don’t worry there’s always time to get on top of your finances.
Further reading
For more information, please visit the Electrical Industries website, with plenty more budget planners and advice on handling your finances at a time when you may need to tighten your belt! You can also get the latest information on our Business Hub.
