Does Money Make You Happy?

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Money is just like time. However much we have we just want that little bit more. But when that little bit more does happen, it is never quite enough.

Many of us dream about having lots of money. Imagine having no more money worries and being able to buy anything we want whenever we want it. What could be better?

Well funnily enough, it would appear that having a large amount of money does not necessarily make you happy. Recent research published in Nature magazine found that there is a “satiation point” at which higher incomes no longer lead to greater well-being.

The research – which was based on representative data from over 1.7 million individuals in the Gallup World Poll – found that the overall average satiation point was $85,000 (ie around £65000). It was found that for incomes above this point, there could sometimes be a decline in well-being.

Now £65000 is well above the household income for many people in the UK. But it is interesting – and encouraging – that the figure that would appear to be enough to make you happy is not significantly higher than this.

It would therefore appear that you don’t need a huge fortune to be happy. In fact we have probably all read about people who have come into a great deal of money and ended up worse off in many ways than when they started. They have either wasted all the money and have nothing left to show for it, or ended up in lots of bitter family squabbles about who gets what.

But even though we know all this makes sense, most of us really would like a bit more money. Whether it is to get out of debt, splash out on something special, or help our son or daughter get a roof over their heads, more money would definitely be welcome.

So as the season of New Year’s resolutions is gradually creeping nearer, why not resolve that 2019 will be the year you really get to grips with your finances? This time next year you may not be rich but wouldn’t it be great to feel in control of your money at last?

Why not have a read through our Seven Steps to Solvency and see if this is something that you could make work for you? If you start the preparatory work now you could get your finances off to a flying start in 2019!

1. Make friends with money

That might seem an odd way to start, but so many of us see money – or lack of it – as the enemy. We are so used to struggling to make ends meet and worrying about money that it becomes a huge obstacle in our lives.
It can really help to take a deep breath and try to see money as just one of life’s resources. Yes, it may be the case that right now there is not enough of that resource in your life, but that is something that you are now going to try and change.
So trying to develop an attitude towards money that is positive – and not fearful – can be a really good start.

2. Decide your financial goals

What do you want to achieve financially in 2019? Whether it is paying off debt, buying a home or getting some savings behind you, write down those plans so that you can start working towards them.
As part of this it is really helpful to get the full picture of where you are financially. So also make a list of all the money that you have – for example any savings, investments, gifts – and all the money you owe – for example loans, overdrafts and credit cards.
You then have all the information you need to get started.

3. Make a monthly budget

This is well worth spending time and effort doing well as it is the key to getting your finances sorted out.

You need to make a list of everything you spend each month. You can do this on paper or a computer – or may even find an App to help you. Do whatever is easiest for you and that you will be able to stick to.
Start with all your regular payments such as mortgage/rent, loan/card repayments, household bills, subscriptions etc. It is a good idea to pay these by direct debit so that they all happen when they should and also you know exactly how much money is going to be taken out of your bank account and when.
Then add to your list any essential spending, for example food and transport to work.

Also make sure you then add anything else that you regularly spend money on. Include absolutely everything so that you can get an accurate picture of exactly where your money is going.

Now make a similar list of all the money you have coming in every month – including salaries, tips, bonuses, benefits, interest on savings, any contributions from family. You need a clear overall picture of all the money at your disposal.

Preparing a budget will give you a good overview of where you stand financially. From this you should already be able to see whether you are just about ok financially or need to make some changes.
But there is more to be done! Read on …..

4. Monitor your budget

Even if your budget looks fine on paper, you may find that you are still struggling to make ends meet by the end of the month. So to make sure your budget is accurate you need to monitor your spending for at least a couple of months. This will take effort but will be well worth it.

So record everything you spend, either in a notebook or computer spreadsheet or phone app. You may well be surprised at what you find! For example, many of us spend far more on food than we would expect: we might write down one figure in our budget but find we are spending almost twice that without realising.
Recording expenditure can be a bore, but without getting a true picture of where your money is really going, you won’t be able to get on top of your finances.

5. Balance the books

Now you know where money is going you can review your budget so that it is really accurate. If you already have enough money to cover your expenditure then that’s great – and you can skip to Step 6!
If not, then the next step is to change a few things as needed, so that your expenditure fits within your income. Again, this will take time and effort but will be worth it in the end.

Firstly review every item of expenditure. Is it essential, and if so could you get it for less? This is a good time to check every bill and see if you can get a better deal: so get in touch with various suppliers such as broadband, energy companies, insurers etc to see if you can get some of your costs down. Also check all your bills to make sure you are not paying for anything you don’t need: it is so easy to keep subscriptions and memberships running for goods and services we no longer use.

If you are shocked about how much you are spending on food then have a rethink about how you can reduce your food bills. For example, planning meals in advance and either buying in bulk or shopping around for good offers can all help to cut the costs.

Also be strict with yourself about non-essential expenditure. Always be on the lookout for cheaper ways of doing things: eventually this will become your natural way of doing things.

Many people find it helpful to start using cash instead of cards. Plan how much you have to spend each week and take out that amount in cash, which you then use for all your spending. It can really bring home the value of every penny when you are using cash to buy things instead of putting them all on a card.

If you are doing all the above and are still struggling, then you also need to look at different ways of increasing your income. This could be changing your job, taking on additional work, taking a lodger or selling some household items: it really depends on your circumstances and the scale of the problem. But it is important to think positively and to remain determined to get your finances sorted.

6. Pay off debt

Many of us struggle financially from month to month because we are carrying around a lot of debt and the monthly repayments are dragging us down. So as soon as you have spare money in your budget it is important to get those debts paid off as soon as you can. Once they are paid off there will be more money available to help you live from month to month, and also to start saving.

If you have a lot of monthly payments – for example credit card payments – it may be worth considering taking out a short term loan to pay off all the balances and consolidate repayments into a single affordable monthly payment. It is important not to get further into debt, but to find the best and most reliable way of paying off your debts as soon as you can.

7. Get saving

It is so helpful to have savings – yet around 10 million households in the UK have no savings at all and a further 3.26 million households have savings of under £1,500. This means that when unexpected costs arise – such as car repairs, boiler breakdowns or family emergencies – we fall back on credit cards, running up more debt.

So as soon as you have followed the previous six steps you really do need to start saving. Put aside a little money each month – ideally into a different bank account that is not too easy to take money out of. Even if it is initially only a very small amount it means that you are starting to establish good financial habits. Your savings will gradually grow, which means that you will have money available for special treats as well as the kind of situations we have just mentioned.

We hope that our Seven Steps help you to get your finances under firm control in 2019, and that you can work towards the situation where you have enough money to make you happy.

The post Does Money Make You Happy? appeared first on LoanPig.

source https://www.loanpig.co.uk/does-money-make-you-happy/

Ten Tips to get Christmas sorted!

Money saving tips for Christmas from LoanPig.

We hate to say it but Christmas is coming! Even though it hardly seems five minutes since last Christmas, it’s already that time of year when the clocks are going back, the evenings are darker earlier, and the battle of the Christmas ads is about to begin.

Many of us dread Christmas. We don’t want to: we want to be swept along in the tide of Christmas cheer that seems to engulf all those around us. Which can make us feel very like Scrooge! The problem is money. How can we let go and enjoy ourselves when we are constantly worried about either not being able to pay for things or sliding deeper into debt?

So let’s take a deep breath and look at some ways that we can plan ahead for a Christmas that is heavenly but doesn’t cost the earth.

Here are our Ten Tips:

1. Decide now what you are doing

This is the first thing to get sorted. Within families Christmas can often lead to squabbles. For that reason we can tend to put off the awkward conversations and the decision-making until nearer the time. But this can lead to a lot of last-minute juggling and you are likely to spend more money if you are rushing around trying to sort out presents and hospitality for unexpected guests.

As well as family, perhaps rethink some of what you do when you meet up with friends. Many of us end up with a lot of different gatherings, and if these are all in pubs or restaurants it can get horribly expensive. So this year why not organise at least some of the get-togethers in people’s’ homes, with everyone contributing food and drink to the party. This will be cheaper than splashing out money you can’t really afford in pubs and restaurants – but just as much fun.

So get these kind of decisions made now so that you have time to plan accordingly and follow our remainingmoney savingtips. Then when Christmas does come round, you will be sorted and ready to have fun!

2. Plan your budget

The next big thing to do is make a budget. Many of us are scared to do this because it can be horrifying to see how much money you are really spending. But it is much better to face reality than end up in a complete financial mess in January, as it can then take you months to recover from this.

So make a list of absolutely everything that you think you will need to buy this Christmas: presents, cards, postage, decorations, food, drink, extra home supplies (bedding, towels etc) for guests, socialising, travel and anything else that you think you might need to spend. If in doubt, include it: better to over budget than not have enough.

You will then be able to see whether you have enough money to cover everything that you are currently planning to spend, or whether you need to follow some more of ourmoney savingtips below!

 

3. Stick to your budget

But before leaving the topic of budgets, make sure that once you have done your budget, you do stick to it! Budgets can look completely workable on paper, but it is all too easy to overspend and still end up in a mess without understanding why.

So you need to keep track of your budget carefully. Record details of everything you spend on Christmas, either in a notebook or on your computer or phone. You can then see if you are overspending on a particular area and then need to cut down on something else in your budget to keep within your spending limits.

4. Presents – reduce the number you give

We all love to give presents but there comes a time when you have to reconsider. Let’s be honest, there are people that get harder and harder to buy for each year, and their gifts to you are probably pretty predictable too. It is often a good idea to agree either to stop the presents or to do them in a different way. So for example if you have brothers and sisters with their own families then you could agree just to buy presents for the children from now on. For the adults perhaps you could either do a Secret Santa between you all, or each take turns to host a special event – an “unofficial Christmas” – during the year.

5. Presents – set an upper limit on price

Another consideration when buying presents, especially for children of family members, is to agree an upper price limit and then all be rigorous about sticking to it. This really helps with the budgeting and can even make it a fun challenge when you know you simply cannot spend more than what you have agreed. This is a great way tosave moneyand also avoid the embarrassment caused by exchanging gifts that have obviously cost very different amounts.

6. Presents – get the best deals

When buying presents it is so easy to get carried away and panic that your gift is not going to be good enough. So it can be really helpful to get back to basics. It’s the thought that counts, not the amount spent on it. If you are really trying to get your finances in order then be open-minded about where you get those presents. Once you have decided the kind of thing you want, then look for a really good deal – for example on an online sites such as eBay, in a charity shop or even inthe Black Friday sales in November. If you allow yourself plenty of time then you just might be able to pick up a real bargain.

7. Presents – be creative

One final thought on presents is that you can save a lot of money by being creative. Is there anything that you could make for gifts rather than buying what someone else has made? Whether you can sew or knit, make jewellery, paint pictures or bake cupcakes; there is a lot of potential for homemade gifts which are often appreciated way more than something off the shelf.

If you are really up against it financially then another idea is to offer your time instead of a gift. Simply think about what you are good at and could offer, and prepare a pretty home made voucher that commits you to provide this during the year. Whether it’s babysitting, dog walking, decorating, DIY, car maintenance or computer wizardry; giving someone a definite offer to do this can really be the best Christmas gift ever: the gift that goes on giving.

8. Cut down the cost of food

Let’s face it: we all eat far too much over Christmas. This means that we also spend too much money buying too much food, and create a lot of waste. Make this year different! It’s perfectly possible to have a wonderful Christmas with plenty to eat, but without spending a fortune.

A lot of overspending on food happens when we leave too much to the last minute then panic buy because we suddenly worry that there will not be enough food. So the key thing to do is to plan your menus carefully then just buy what you actually need.

So sit down with either some Christmas recipe books or the Internet, and plan what you are going to cook and when. Two ways to save money are firstly to try and plan dishes that use some of the same ingredients so that you can buy in bulk and save money that way. Secondly be realistic about your portion sizes. You want people to have enough but not to be left with mountains of waste. Check out websites such as Love Food, Hate Waste for guidance on portion sizes.

Once you have done your planning then start shopping. Start now! If you buy as much as you can in advance this will spread the cost and avoid last minute rushing around. It’s also a good idea to plan a time when you will do that last minute shopping so that you feel in control of it; why not put a date in the diary that you can work towards. Nearer that time check out the best supermarket deals for the things you want. Even if that means splitting your shopping between two or three different stores it will be worth it to get the best combination of money-saving deals around.

9. Cut down the cost of drink

Just as with food, most of us also spend far too much money on drink over Christmas. We feel obliged to have supplies of every kind of drink possible “just in case”. It is impossible for the average household to be as well-stocked as the local pub, so this year why not just make sure that you have a plentiful supply of the most popular drinks – eg beer, wine, cider and soft drinks – and if guests have other preferences then ask them to bring their own.

Most of us also drink far too much over the festive season so perhaps it’s time to embrace the concept of drink free days and have some days when you lay off the alcohol. Not only will this be cheaper but you will feel a lot better, and will enjoy a few drinks even more on those days when you are drinking.

10. Save more money for Christmas

Even if you follow all the above steps, Christmas can still be an expensive time. If you know that there will still be a shortfall in your Christmas budget then you still have time to rescue the situation.

One way is to try and find some extra work over the next few weeks. There are many seasonal opportunities in shops, bars and hotels that you may be able to fit in around existing commitments. Yes it will be tough, but it’s only for a few weeks. Or you could see if there are things you can do on an ad hoc basis such as babysitting, pet sitting, odd jobs etc.

It’s also a good time of year to have a good clear out of your home; to declutter before Christmas. This may reveal items that you no longer need, and can sell on eBay or perhaps have a car boot stall. There may be someone out there looking for the very thing that you are trying to get rid of.

Finally, you may want consider taking out a small loan to help you through Christmas. It is better to borrow money on a planned basis, with a clear timescale for paying it back, than end up drowning in uncontrolled credit card debt. At LoanPig we offer a range of short term loans that could be just what you are looking for. Loans that you can repay in affordable instalments over a time period that works with your budget. Click here to find out more about this possibility.

Whatever your plans for Christmas 2018, we hope that our Ten Tips help you to manage your money more effectively – andsave moneywherever possible – so that you can really enjoy Christmas this year.

Check back here soon for more money saving tips from LoanPig.

The post Ten Tips to get Christmas sorted! appeared first on LoanPig.

source https://www.loanpig.co.uk/ten-tips-to-get-christmas-sorted/