Getting your finances in order will most certainly give you peace of mind and although it may take a little bit of effort, it will be worth it. The task may seem at first to be quite stressful, but the results will definitely bring about a feel good factor, knowing that you have all your finances organised.
8 Top Money Management Tips:
1. Be aware of your income. Understand how much money you will be bringing home each week or month after deductions have been made. Once you know how much money you are bringing in, you will know how much you can afford to spend.
2. Create a budget. In order to manage your money correctly, a budget is necessary. Make a budget planner and stick to it! There is great budgeting software available which will map your cash flow in order to help you live within your means.
3. Tackle any debts you may have. These days, getting into debt has become a way of life and the heavy reliance on credit cards can be disastrous. If you owe money on several cards/accounts use the snowball method to reduce the debt by paying off the smallest balances first while at the same time paying the minimum on the bigger debts. Once you have paid off the smaller debt, move on to the next smallest debt and pay that off whilst again paying the minimum on the other debts. Before you know it you will be paying off the larger debts and getting your finances back on track. At the same time, avoid putting credit cards in your wallet/purse so that you are not tempted to use them!
4. Catch up on your bills. If you find you are behind on your bills, make a list of those that are outstanding and plan how you are going to pay them. Your mortgage and rent bills should always take priority, followed by utility bills. Arrange the other outstanding bills in order of interest rate or amount. Many companies who you owe money to will be happy to arrange a payment plan if you get in touch with them, so communication is important. Work out how much money you need to bring your bills up to date, and adjust your spending accordingly by cutting out unnecessary expenses, for example eating out, going to the movies.
5. If you need to raise more money to clear up debts, consider taking on a part-time weekend job or selling some of your possessions that you do not need anymore on e-bay.
6. Before spending money on something, ask yourself “do I really need it?” Purchase only necessary items that your budget allows, and save up for those luxury items like holidays.
7. Try to save and invest for the future. Do your research on how best to invest your money and what will work for you.
8. Set up an emergency fund for those unexpected expenses such as vehicle repairs, medical expenses, etc. It would be good to put it in an account that gives a high interest rate, but remember you will need to access it quickly in an emergency.
Effective money management will help you live within your means and without stress. Staying in control of your finances means you are staying in control of your life, so start making some positive changes today!