#SpendWiselySaveWisely and make financial wellbeing a priority in 2024

Making financial well-being a priority for 2024 doesn’t mean you’re in for a joyless year. According to investment expert Bella Caridade-Ferreira, founder of comparison platform Compare + Invest, if you spend wisely and save wisely, your bank balance will thank you for it and you can still have plenty of fun.

“The key to financial wellbeing is to make conscious decisions,” explains Bella. “All too often we fritter away our money on everyday, unnecessary expenses that leave us with much less disposable income at the end of the month. There is no point in depriving yourself and feeling miserable. If there is something you really want, go for it but don’t do it without thinking.”

Here are Bella’s top tips on how to save and spend wisely –

Get to know your finances – the first thing you need to do is take a look at your bank account to see how much comes in and how much goes out every month. Are there any leaks? For example, did you take out a TV subscription service that you hardly ever use but pay for each month? Do you have a gym membership even though your trainers are gathering dust? Perhaps you’re spending too much on takeaway lunches. Highlight any of the things you can cut back on without too much discomfort.

Save where you can – cut down rather than cut out. For example, if you are spending £700 a month on takeout coffees and you enjoy your morning cappuccino more than anything, think about ways to reduce the spend. Perhaps you could make your own coffee and take it to work in a thermal cup for half the week, saving you £350 that you can put into an ISA…

Spend consciously – try not to make spending decisions in haste. We all have gadgets or items of clothing that are hardly ever worn or used. If you see something you like, give yourself a few days to think about it. If you still want it just as much, go ahead and make the purchase. You might find that your desire for the item wanes as time passes.

Socialise in different ways – don’t feel pressured into paying for an expensive meal because that’s what your friends insist on. There are many ways to spend time in their company without breaking the bank. Go for coffee and cake rather than a three-course meal, enjoy a walk or cook a meal and invite them round.

Don’t be embarrassed by your finances – there is no shame in telling someone that you can’t afford to go to the theatre with them or share a mini-break in Amsterdam. If you are open about your finances, friends and family won’t always assume you can afford their suggestions.

Pay yourself – yes, you read it right, you need to pay yourself! That means once all your bills are paid, put some money aside each month for yourself. Put it in a savings account, ISA or invest and watch it grow.

Pay into a pension – if you have a job, you’re old enough to pay into a pension. It may not seem important when your retirement is far in the future but it pays to start as soon as you can. You’ll probably spend 30 – 40 years in retirement and it won’t be much fun if you’re living on a state pension, which is currently around the £200 a week mark. It’s not a lot. Give yourself time to save, don’t wait until you’re 40 or 50. Pay as much as you can into your work pension because the government will give you free money in the form of tax relief.

Put money aside for fun – if you put small sums of money into a pot and label it ‘fun’, then there will always be spare cash to blow on the things you love whether it be a new pair of shoes or a night out clubbing.

Pay off credit card debt – credit card debt is expensive! If you owe anything on credit cards, transfer to 0% cards as soon as possible. If you have several cards, pay the minimum on all of them and put as much as possible into paying off the next expensive card. Once that’s cleared, tackle the next one, etc.

Invest – if you have money to spare at the end of the month, invest it. Putting money into a savings account is rarely inflation-proof, whereas long-term investing generally is. Investments can go down as well as up in value, but they have historically risen in the long term. There’s no need to start panicking and buying yourself a subscription to the Financial Times because, with the help of a platform like Compare + Invest, you can read useful resources and find an investment platform to suit your needs.

Whether you’re a seasoned investor or just starting out, Compare + Invest’s comparison tools will help you find the right platform to achieve your financial goals. For more tips and advice go to https://compareandinvest.co.uk