Fewer benefit claimants shows positive results in economy

There are a few things you can do to help improve your financial situation.

09:04 16 June 2013

The number of benefits claimants is apparently at one of its lowest points in the past two years, which portends positive outcomes for the economy. Earnings may still not be rising quickly enough to suit people’s preferences, so here are a few ways to try and muddle through until your financial situation improves.

 

• Savings—if you have any extra cash flow in your budget, you will want to establish a savings account as soon as possible. No matter how tight your budget is right now, it just takes one problem to escalate an already difficult financial situation.

 

• Expenses—look over the past few months of expenses and see if it matches up with the expenses listed in your budget. If you have consistently been spending more each month than you think you do, you will need to quickly change your budget to avoid dropping into a negative financial situation.

 

• Cutting back—once you have looked over your expenses, you should have a better idea of where you can cut some of your expenses, or reduce levels of certain services such as cell phone plans or internet. This is a crucial aspect to improving your financial situation.

 

• Investing—if you either have a fair amount of money free to use after your expenses, or if you have cut back enough to leave yourself some extra, consider different types of investments to further your financial situation. You could choose a Cash ISA with a better interest rate, which can give you tax free growth at a better rate than a regular savings account. For long term investing, a Stocks and Shares ISA might be the perfect option.

 

• Groceries—one of the difficult areas of a budget are the groceries a family needs during a tough financial situation. You may qualify for some assistance, so definitely check, but then try to find meals that use similar ingredients that will provide more meals.