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Introduction.

If you’re worried about the state of your finances perhaps it’s time that you thought about giving yourself a money makeover. Many people think that having a money makeover is just about cutting back on what you spend so that it doesn’t exceed your income. Whilst that is, of course, very important a money makeover should actually change your whole philosophy toward how and when you spend your money.

Take some time with your money makeover.

Sorry, this article's about a money makeover - not a honey makeover!

 Having a money makeover isn’t something you can do in half an hour. You need to be prepared to spend a day or two identifying every item of your weekly or monthly expenditure and then find alternatives to your current spending patterns. Food bills are a good place to start, if you’re in the habit of eating out several times during the week or just ordering meals to be delivered to your home – reduce this expenditure now, simply by buying your own ingredients and cooking more at home. Then of course you need to find out which stores and markets offer you the best value for money in your area. You then need to apply that approach to everything, yes everything, else that you spend money on. For example, can you get a better deal on your electric supply, what about your landline, cell phone and broadband contracts? Anything you spend money on, even getting to work, can you do it more cheaply?

Debts in money makeovers.

The one thing with the potential to derail a money makeover is any debts you might have on personal loans and credit cards. With credit card debt you should look to transfer to card with a lower interest rate than your current one or better still one offering zero interest. By saving money through your money makeover you will hopefully be able to repay outstanding loans more quickly. However, if you feel that the debt you’re in is a serious barrier to your money makeover, discuss with the finance company how a debt consolidation loan might benefit you in clearing your debts.