Without careful and structured financial management, it can be all too easy for your bank balance to fall into the red and force you into debts you cannot pay. While many people hate the idea of setting out plans to balance their books and the idea of facing up to your spending habits can seem scary, but rest assured that there are simple ways to keep your money management under control. Here are some of the best and easiest ways to manage your finances…
Keep an eye on your spending
One of the first things you can do to begin taking control of your money is by writing down everything you spend over the course of a month. This will help you to paint an clear picture of what your ingoing’s and outgoings are and then begin working out a monthly budget. The more you stick to your budget the easier it will eventually be to follow it in the long term.
Short term loans
If you are one of those people who are very rarely suffer with money management problems, short term loans may be an ideal finance solution. Short term loans are unsecured loans that offer quick cash injections to those who need money instantly. In some cases short term loan companies can have the money you need in your bank account the very same day you apply, which can be a lifesaver if you are ever met with a cash flow emergency. Carefully consider if you can make the repayments and shop around to find the best rate for you!
Combine finances with your partner
If you are married or living with a partner, be sure to combine your finances into one joint account and put in half each of what is required to cover all your bills, utilities and rent. This means all of your main outgoings that MUST be paid are all in one place and you can share the responsibility of paying them. Also be sure to switch payments to direct debits so that you do not have to rely on being reminded by a letter etc. to pay your bills. It will streamline the process.
Create an emergency fund
It’s very important to have some form of savings account set aside for emergency situations, such as unexpected vet bills or car problems etc. While it may be tempting to rely on a credit card, it is far wiser to save a little each month so that you can quickly and easy cover the cost of a boiler breakdown without getting into long term debt.
Spend your cash
Using cash to spend your money is one of the easiest ways to curb your spending habits. If you put the amount you allocate yourself per week or month into envelopes and use only the amount of cash you have, it becomes far easier to spend money more thoughtfully. Restricting yourself to following your monthly budget by only spending a certain amount of cash also becomes far more straightforward and easy and you will find yourself being more mindful of what you spend.