Top Tips on Managing Your Cash Flow

Be Happie, its payday! However, for many this can end up as an excuse to spend everything you’ve worked hard for, living pay check to pay check and feeling like you have no control over your finances. This blog will guide you through some practical ways and mental strategies to manage your cash flow and spending habits.

1. Stop impulsive shopping

Avoid the temptation of promotional emails and ads encouraging you to spend money on things you do not need. Brands and companies will lure you into this “FOMO” (Fear of missing out) attitude with their sale and discounted marketing tactics. The prospect of limited-time online deals, and free next day delivery are money grabbing ways to empty your wallet and tempt you to spend more at a convenience. Unless it is necessary, or an occasional treat, impulse buying can leave you with a bunch of things you do not need!

2. Avoid feelings of regret through habits of instant gratification

Sometimes it is easy to fall for our desire to want something without delay. For example, purchasing the latest smartphone at its highest market value, instead of waiting a few months for the price to drop significantly. When facing an expensive purchase, it is a good idea to consider the following questions. Ask yourself, do I really need this right now? Will I be interested in this item in a few months? Is there a less expensive alternative? Can it wait until a later date? By considering all these questions, can help you make more informed choices on what you spend your money on.

3. Start a Savings Plan 

Although we should focus on the present, it is important to have the future in mind. Create a budget and think about what percentage of your earnings you can put aside monthly, even weekly, towards your savings so that you may thank yourself and be prepared for a rainy day! Given the unpredictable climate of life, you can never be too prepared.

4. Become educated on financial management 

You are never too old to gain financial knowledge on how to manage your cash flow. Research into the right bank accounts that can help you save for a mortgage, for example ISAs and mortgage current accounts. This can be critical to your financial success and help you build your investment portfolio. It is also important to manage your expenses. After evaluating your compulsory bills (such as rent, food, phone tariffs etc.),  see where you are overspending and what can be cut out. Create a debt plan if you have debt to pay off. This will give you peace of mind when it comes to preventing things like an overdraft and credit card loans looming over you.

It is always smart to prioritise your finances and set goals to keep on top of your cash flow. It is also useful to research into long term investments so that your saved income can grow overtime. While it is important to manage your income, it shouldn’t stop you from enjoying your life. Treat yourself within your means and let your hard earned money work for you, not against you!

Here at Happie Group, we help our clients enjoy a smooth payday through our payroll services. We understand that delays and inaccurate pay can discourage the joyous feeling all employees should have for being rewarded with their hard earned money. Contact us today to find out more about what services we offer.