Tips to help you take control of your financial situation
If you feel like your finances are in disarray, or you’d like to be more organised when it comes to managing your money, there are some very simple steps you can take to eliminate the hassle and stress related to accounting. You don’t need to have a degree in economics to keep track of spending and ensure you have an accurate idea of your financial status. Here are some easy ways you can take control:
Create a budget
If you don’t already spend a few minutes at the beginning of the month drawing up a budget, now is the time to change tack. Budgeting is so simple, and it can make such a positive difference. If you have a budget, this will enable you to identify areas where you may be overspending, it can prevent you from running into cash flow issues, and it can help you save more. There are various options open to you if you’re not familiar with budgeting. You can dig out a notebook and go for the rustic approach of writing down expenses and costs, you can use spreadsheets to track spending, or you can embrace modern accounting concepts and use apps. To produce a budget, all you need to do is note down your income versus your regular expenses and any additional outgoings you expect to incur that particular month. Once you have a series of numbers in front of you, this will enable you to calculate how much disposable income you have and to portion out your money to cover different living costs. Remember to update your budget as you go to make sure that it’s as accurate as possible.
Be clear about debt
Debt is a very worrying issue for many households. If you are in debt, it’s hugely beneficial to be clear about how much you owe and who you need to pay. If you’re in control of your debts, for example, you’re paying back a mortgage, or you’re up to date with payments on a credit card, you don’t need to worry as long as you can carry on covering the agreed installments. If you have outstanding bills, your credit card spending has spiralled out of control, or you’ve missed rent or mortgage payments, and you can’t see a way forward, it’s wise to seek advice as soon as possible. There are ways of tackling debt, and a professional adviser can help you to find the best solution.
Audit your accounts
Do you ever check your bank balance and wonder where on earth all your money goes? If so, you’re definitely not alone. When you have numerous bills and payments going out every month, and you tap to pay for items in shops and stores, rather than getting out cash, it can be tough to keep track of spending. Many of us are guilty of spending money on things we don’t really need, and this is where carrying out an audit comes in useful. If you’re wasting money on a gym membership you’ve never used, you’ve accidentally subscribed to a service after enjoying a free trial, or you’re going overboard at the supermarket every week, it’s beneficial to see where you’re spending money and highlight potential cutbacks.
Simple ways to save
Once you’ve taken control of managing your accounts, and you have a budget and you’re checking your balances on a regular basis, focus on saving money. Almost all of us could claw back pennies and pounds by making a few simple changes. Here are some straightforward ways you could save a substantial amount of money:
Check your phone, broadband, and TV contracts
When was the last time you shopped around for a phone contract rather than upgrading, or you had a look at what other TV and broadband providers were offering? You might think that you’ve got a great deal, but if you don’t know what other companies are offering, you might find that you’re missing out on much better incentives and packages. Consider options like broadband only deals if you don’t want to pay for a landline, and don’t just renew your TV or mobile contract. Use the Internet to compare prices and look at discounts that are available for new customers. As competition is so intense, providers often save their best deals for new clients.
Explore alternative insurance providers
Be honest. When you get a letter or an email reminding you that your car, pet or home insurance is due for renewal, what do you do? Do you forget about it and automatically sign up to a new policy that is probably more expensive, or do you shop around? If you take the easy option, and you’ve been with the same providers for years, you could be paying hundreds, even thousands more than you would be with different companies. If you have multiple policies, you could save vast amounts of money by comparing prices and switching providers. Use online comparison sites to find deals based on your requirements.
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Shop with a list
Many of us succumb to marketing ploys when we peruse the aisles of the supermarket. If you end up buying a load of items you don’t need, make a list in advance, and stick to it. If you find it impossible to resist temptation, even with a list, switch to online shopping.
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Is managing your money stressing you out? Do you find it hard to keep track of your finances, or do you wish you had more disposable income at the end of the month? Accounting isn’t everyone’s idea of fun, but it doesn’t have to be a chore. There are some very simple ways you can take control of your financial situation and give yourself a little more breathing space.
This is a collaborative post.
