In reality though, the cause of many a sleepless night has less to do with ghostly spirits and blood-curdling banshees and more to do with bank balances. Finances can be daunting and often something we don’t want to think about lest we become consumed by terror. But like all scary things, tackling them head on is the key to a life free from fear.
Hiding under the duvet from the money monster will only add to your misery, it’s time to shine a torch on your finances and take note of your current situation. The first thing to do is to remove the skeleton from the closet – debt. Debt needn’t be terrifying; the key to taking the sting out of its bite is to clear any outstanding amounts as quickly as possible. The interest rate for outstanding debt is typically set at a higher rate than that of savings accounts, so trying to save while paying off significant debt is never going to yield a high return.
A week after pay day, are you howling at the moon in despair? At a loss to know where all your money has disappeared to? Then the solution to your problem is a silver bullet in the form of a budget. Budgeting affords you the opportunity to review your incomings and outgoings, by doing this you will have a far greater understanding of areas where your money could work more effectively for you. By having an overview of how your finances currently stand, you are in a strong position to consider your financial goals – what do you want to achieve in the future? Perhaps a new car, a nest egg for the future or a holiday to Transylvania next Halloween?
Whatever your goal, it’s important to take time to research how you can achieve it. What kind of savings account would suit your needs best? If locking your money away, removing temptation and letting your savings pot grow appeals to you, then it is worth exploring Fixed Term accounts. However, if not being able to access your funds gives you a case of the heebie-jeebies then an Easy Access account may allow you the flexibility you crave.
Perhaps most terrifying of all is the imminent arrival of Christmas. If you haven’t started saving yet - don’t panic - there is still time to put something away to help cover the cost of Christmas.
Unlike Halloween, your money shouldn’t scare you. By keeping tabs on what your money is doing and setting clear financial goals, you should enjoy all treats and no tricks.