Whether you are the head of the household or the head of the business, you should begin optimising your 2013 finances by cutting expenses.
Cutting Expenses in 2013
One of the easiest ways to cut expenses in 2013 is to purchase necessities in bulk. The stables of your foodstuffs and wardrobe should never be purchased at retail price; there are simply too many ways to save money by purchasing them in bulk directly from the manufacturer.
Food products such as rice, beans, bread, flour, sugar and butter can be purchased in bulk. Many individuals fear purchasing items in bulk because they feel they will not have a chance to use the entire purchase. However, even if you do not use the entire purchase, you still save money because you are not under-prepared for any emergency.
Clothing products such as underwear, T-shirts and socks can be purchased in bulk as well. Because these items have a long scale of usefulness, they are less prone to go unused and can actually last for years after the initial purchase.
There are many other ways in which you can shore up your household expenses; however, for the sake of brevity, we will allow you to find these as we move on into ways to optimise your income.
Optimising Your Income in 2013
However much you save by cutting back on expenses, it is nearly impossible to save your way into financial freedom. You must also make sure that your income is being put its best use as well. Even if you were to put all the money you saved into a savings account (and whilst interest rates aren't what they once were, there are some decent deals with Clydesdale Bank, your savings are not going to get you to where you want to be alone.
The number one use for your income should be to pay yourself with every pay cheque and move yourself closer to financial freedom every month. The number one way in which you can accomplish this is to set aside money for yourself out of every pay cheque just like you were paying the bill. In short, "pay yourself first."
Learning to invest is also a necessary skill in making sure that your income goes to its best use. Although many people may think of investing as an activity that only stockbrokers perform, the true nature of investment is within the every day decisions that the average person makes.
For instance, if you invest in a home coffeemaker instead of getting your daily coffee from a shop, you can save yourself anywhere from £1,000 - £1,300 per year (depending on your choice of drink). There are many opportunities like this for investment in your daily life; all that you have to do is look for them.
Make 2013 the year you change your mindset. Yes, spend less and start to save money. But, you should also make this the year you begin to invest for your future.