Want to get on top of managing your finances? Were here to help.
Getting to grips with your finances can be a daunting task, however with a little time and effort, you can take steps to really get on top of your finances for good. If you live in a shared house you may want to check out our previous blog first.
Outline your income and outgoings
It’s not fun, but it helps. Sit down with a cup of tea and work out every monthly expense. Bills, average shopping costs… get it all written down. This will help you take stock of your current situation, setting you up with a budget. You may also want to check your credit score and report at this point, it will give you a bigger overview of your financial history and you can see if you need to take any steps to improve your score.
Set attainable goals
Now you know where you are, where do you want to be? Set some goals that are clear, defined, and – above all – possible. Whether it’s clearing an existing debt to or saving a specific amount, this will help keep you on track when planning your finances.
Track your spending
Tracking your finances – admittedly it doesn’t exactly scream “exciting”, however, it’s easier than ever to keep a firm grasp on your spending habits and where your money’s going. There’s a huge range of smartphone apps that help you budget, which, in addition to easily accessible online banking, gives you total control over your money, rather than your money controlling you.
Put a little bit aside
If possible, put a little cash away each month in a separate savings account. This isn’t just for big purchases – in a sudden cashflow emergency or unforeseen bill, that money you’ve got squirrelled away can be a lifesaver.
Occasionally treat yourself
We all, rightly so, want to be careful with our money, but don’t let that stop you from enjoying life. The occasional getaway or dinner with friends might be “unnecessary” spending, but it’s good for your mental health and enjoyment of life. Ultimately, what could be more important than that?