In 2022, ‘level up’ your finances in three easy steps –’money saving mode!’
NEW YEAR’S resolutions are difficult to keep, but a week into 2022, Britons may be able to drastically improve their financial situation, “leveling up” for the coming year, according to an expert.
Many people’s top resolution for the new year is to rethink their attitude and relationship with money, but it can be difficult to know where to start.
Fortunately, one expert has offered advice on how to improve one’s financial situation, and the answer may be found, unexpectedly, in video games.
The best way to think about approaching one’s finances, according to Rob Gardner, Director of Investment at St James’ Place Wealth Management, is to think of it as a video game.
There are several levels to complete, and people should try to finish each one before moving on to the next.
He told This Website exclusively that too often, people are focused on bigger goals when they haven’t set themselves up with the basics, and that walking before running is essential.
The first step is Level One, which is when a person has a lot of debt and no savings.
The most important step is to pay off any credit cards and store cards you may have, as these are the most common sources of debt.
Those who earn enough money and are able to make more than the bare minimum monthly payments should do so first, aiming to eliminate high-interest options.
Those without a source of income and mounting debts, on the other hand, may need to take more drastic measures.
Mr Gardner advised people to contact the companies in question and explain that they are having financial difficulties, and that help, such as a payment holiday, may be available.
Other resources are available through debt charities and organizations like StepChange, which provides free resources to help people manage their debt.
After this is completed and debts have been paid off, a person can proceed to Level Two, which is the establishment of an emergency cash fund.
“Everyone’s emergency cash fund will be different,” Mr Gardner explained, “but based on everything we’ve learned since the pandemic, a minimum of three to six months’ worth of critical outgoings would be the most prudent.”
“Think of your money as a smartphone battery: we know exactly what to do when it runs out.
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