It’s more important than ever for people to take control of their finances. With the rising cost of living, bills are getting higher and money is becoming harder to control. Staying on track will mean you can pay your bills on time and have peace of mind.
If you’re finding it difficult to keep track of your finances, there are some tips that could help you change things. Take a look below.
Cut Costs Where You Can
It’s always worth looking at where you can cut costs, no matter what your financial situation is. However, if you’re finding that the majority of your pay disappears from your bank account the second it goes in, it’s vital to cut your spending where you can.
Look at your outgoings and find the expenses that aren’t a priority. This could be anything from your Netflix subscription to your child’s extra ballet classes. Small savings can make a big difference.
Set Savings Targets
Many people get into debt to purchase things they want. From new cars to holidays, and everything in between. A better way to get what you want is to save the money and buy it outright so you have no debt.
Set yourself a financial target and start saving small amounts towards it. You may be surprised by how quickly it adds up and it will save you paying potentially high interest to lenders.
Plan Your Budget
Budgeting is never easy for anyone. Many people make the mistake of being too strict on themselves and then over spending on treats when they eventually crack. It can help to get some financial advice from Alex Kleyner before setting a budget.
Know exactly what money you have coming in and going out to plan your budget properly. Find someone you trust to be a budget buddy with you so you can hold each other accountable for your spending and stay on track.
Download An App
There are many different budgeting and savings apps to choose from. Make sure you download one from a trusted app store so your data remains safe. Using an app is a great way to set yourself reminders and have quick access to financial details.
Whether you’re saving towards something you want to purchase or saving to cancel out your debt, there are apps that are specific to your goals to improve your personal finances.
Set Up A Transfer
When your money is just sitting there, it’s a huge temptation to avoid spending it. Instead, set up a transfer or direct debit for a certain amount every month. It will leave your account in the same way your bills do so you’re less likely to miss it.
Transfer the money to a savings account where it can gather interest over time. When you start making a habit of this, it will become much easier to save throughout the rest of your life.
Prioritize Your Debt
In addition to having greater peace of mind and financial security, paying off your debt will also put you in better standing for any future borrowing. For instance, if you’re looking to buy your own property in the future, mortgage lenders prefer to lend to those without debt. If you have large debt, making small contributions can seem pointless.
However, even small contributions get you closer to being debt free. Focus on your biggest debt first and add as many additional payments to the debt as you can. Once you’ve cleared that debt, work on smaller debts.
Be Flexible
No two months are ever the same. Even when you put a budget in place, there may be times when you need to adjust it. It could be that your car needs to be fixed or your washing machine needs replacing.
Know that there may be some months where your savings need to be used for unexpected emergencies. Deal with the financial emergency and go back to your original budget the next month.
Check Your Direct Debits
Lots of people have direct debits they’ve forgotten about. Perhaps you’re still paying a charity you signed up for years ago or maybe you have a subscription you no longer use. The smallest amount leaving your account can add up over a year.
Go through your direct debits and look for any unnecessary payments being made. You can cancel direct debits that you no longer need and take control of your money again.
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