Managing your money can be confusing, more so if you are not sure of how to manage it effectively. If you are looking on a way of maximizing the efficiency of your payroll then here are some tips on how to manage your payroll effectively;
1. Stay Organised
Organisation is essential when you are looking for a way to maximise the efficiency of your payroll. If you have exciting but expensive plans coming up make sure you’re setting aside some money, to make sure you don’t panic at the last minute. Budgeting is also a great way to organise your payroll, set an allocated amount of money for monthly expenses;
Groceries, Bills and Petrol. This will allow you to know how much money you can then save and spend.
2. Savings Account
Planning for your feature is extremely important. Setting up a savings account with your chosen bank is a great way to store away that extra money, some banks offer interest on the money you put away. This means that the bank will pay you a small percentage for having the account with them. For example, if you had a savings account with Quarterly 4% interest and had £15,000 in the savings, the bank would pay £600 into your account every 3 months. This is something we recommend you spend a large amount of time researching and talking to a wide variety of banks before deciding on the one. This will ensure you get the best possible deal for you. You can now even automate your savings when that large sum of money enters your account. This system will transfer your set amount of money from your one account to a savings account, this will save you accidentally spending the money you wish to put away.
3. Keep Records
Keeping records can help you figure out what you spending your hard earned cash on. Don’t just keep track of the large spends, remember; the small coffee, tips, parking. This will make budgeting easier and simplify the process in the long run. Once you have gathered and collected all your data, the next step would be categorising. Categorise into appropriate groups, we recommend you include categories for; groceries, mortgage, petrol, bills. Add any category you feel works for you and your spending habits.
4. Saving for Something You Want
Its been proven that if you are saving for something that you really want or have a interest you are more likely to actually save and not give up beforehand. Have you always wanted that new phone or car? Why not save up for it! Perhaps you have been dreaming of a sunny holiday all year round but when you come to book it you haven’t got the money you need. Don’t let this happen again, set up another savings account or manage your money to allow that getaway break.
Priorities are key, once you have deducted your expenses and income its important to decide what to do with the rest of your money. What are your Priorities? Retirement, Holidays, New Car? It could be anything. Just make sure you are setting aside the money you need, this will prevent any mishaps and cause you a lot of trouble in the future. Be sensible, don’t just splash the cash on a new car or handbag, do your research and take your time.
We hope that our blog has been helpful if you have any questions please dont hesitate to get in touch on 01895 431 476 or alternatively head over to our contact page to fill in our online enquiry form.