Managing Your Finances : Where To Start

September 21, 2017 8:18 pm

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Unfortunately for many of us, money doesn’t grow on trees. There is no magic way to make sure that we never have to worry about our money again unless you’re rich of course. But for the rest of us, being able to manage our finances in a smart way is a skill which takes a lot of trial and error (and being able to resist Amazon). Today we are going to take a look at a few ways in which you can start to record and manage your finances, allowing you to see what money you have and where to spend or save.

Know Your Goals

Plan to start learning to drive by the end of the month? Or maybe you want to put a deposit down on your first home by the end of this year. Whatever your plans are for the future, make sure you write them down and estimate how much it will cost you. Once you have these figures written down, you can start to plan your savings around them.

Write It Down

Although modern technology is great, and creating a fancy excel spreadsheet with your incomings is nice; nothing beats putting pen to paper. Keep it simple. Start off by writing down what you earn each month. Now write down any essential outgoings, such as a mortgage payment, gas bills, car insurance, mobile phone contract etc… Once you’ve done this, figure out how much is left over. Once you’ve got a number, it’s time to make a budget for food, entertainment and savings. If at the end of the month you still have some money left, you could treat yourself to a Pizza or buy that new jumper you’ve wanted.

Stick To A Budget

A budget is the single most important thing to stick to if you want to manage your money effectively. After all of your necessary bills have been paid off, you will have a budget left over for your food and other living costs. Make sure you stick to your food budget each week by buying larger amounts of food and making one big batch for the week. This can cut down your food bill significantly. There are some fantastic one-pot recipes on Pinterest which are cheap and will save you overspending.

Hire an Accountant

If you feel that managing money just isn’t your forte, then why not hire an accountant to help you? And if you already have an accountant who isn’t up to standard, you can find out how to switch accountants and pick one more suited to your lifestyle. It will not only take the stress of you, but will free up your time for other things.

Get Out Of Debt (Or Stay Out Of It)

It could be student debt, or maybe you just spent too much on your credit card once. Either way, debt is a brick wall which you must learn to smash through in order to be in a comfortable position with your finances. Try putting a little away each month to pay off a long-standing debt, and once it’s paid off, stay out of debt. Avoid using a credit card, instead, stick to a debit card as you won’t have the option to overspend. It might mean living a more frugal lifestyle for a while, but in the long run, it will do wonders for your credit score and your stress levels.

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