Learning how to control your finances is one of the best skills you can master in your adult life. Unfortunately, you need money for just about everything, and so whether you’re working with a little or a lot, it has to be handled in the best possible way. You’re always going to need to feed yourself, keep a roof over your head and pay bills so getting your money under control is beneficial for everyone. Even if you’ve made some mistakes in the past, not spent your money wisely and run up debt, it’s not too late to get it sorted. Here are a few of the ways you can be sure you’re doing everything right.
Create a Budget
First things first, you need to know exactly what you have coming in each month, and exactly what goes out. This allows you to prioritize your bills and then you can decide what you want to do with money left over. Whether you choose to spend it or save it is up to you, but that way you’re not overspending and using money which has to be spent elsewhere. There are tonnes of great budgeting apps and tools online, Forbes.com lists a number of them. Simply enter in the figures and it will work it all out for you.
If you’re in debt and struggling, there are ways you can resolve the situation. IVAs and debt management plans can work to freeze interest and reduce monthly payments giving you far more control of your money again. Speak to a debt management company and see what they’re able to offer you, rather than avoiding the phone and dreading further warnings dropping onto your doormat each morning. Another thing you could do is take out a personal loan from a site like ReallyBadCreditOffers.com and use this to pay off all of your debts. That way you consolidate everything into one payment and save on paying interest on multiple accounts. It makes everything cheaper and much easier to manage.
Open a Bills Account
Paying your bills doesn’t have to be difficult. If you’re still phoning up to pay them when they come through the door, why not set everything up to direct debit instead? If you call around all of your bill companies, ask to set them to a specific date. That way, you know how much you’re paying each month and exactly how much needs to be in that account by the date due. According to Uswitch.com it could even save you some money too. Keep this separate from your main bank account, that way you’re not accidentally spending into it. If you open another account with the same bank, you can easily transfer money into the bills account via online banking.
Finally, it’s a case of getting your priorities right. If you know you’re living above your means, then it’s time to make a change. We all get enjoyment out of spending money, but bills, rent, food and other boring things HAVE to come first. Once you nail this, you can spend whatever is leftover guilt free and know you won't end up in any financial trouble.