Money management is one of those things that we should all understand. But, the truth is many people aren't that good at taking stock of their finances. As a result, they end up spending above their means and begin to enter financial hell.
As you can imagine, getting into such a situation is not a good idea. Managing personal finances is akin to running a business. You need to make sure you have more money coming in than going out! So, you'll need to earn more than you spend.
Are your finances looking somewhat embarrassing? If so, all is not lost. In today's blog post, I will share with you some practical steps to help you get things back on track. Here is what you need to know:
Make a list
The first thing you need to do is a list of your income and expenses for each month. You need to know how bad (or good) your situation is before you can come up with a plan of action.
A sheet of paper and a pen is all you need, but you could always do the same thing with a computer and a spreadsheet too. Make sure you only include monthly items.
Highlight expenses you can cancel
If you're sailing close to the wind, as it were, it makes sense to highlight list items you should cancel. For instance, you don't need a Netflix subscription to survive. Nor is Spotify a necessity in your life.
The aim of the exercise is to cut back on non-essentials so that you have more money available. After all; the last thing you want to do is go bankrupt!
Get rid of your credit card balances
It's likely that you'll have a few credit cards to your name. They are a terrible form of borrowing because of the interest you pay. In a nutshell, you are paying interest on top of interest already charged!
Work on a strategy to pay off your credit card balances as a matter of priority. Does any of your cards have a small balance? If so, consider getting a loan from www.MoneyBoat.co.uk. The interest you'll pay on the loan will be lower than on the credit card.
Another common strategy is to take out a debt consolidation loan to pay off your credit cards. You'll only have one lot of interest to pay, and the total cost will be lower than what you're paying now.
Be savvy with your shopping
When it comes to grocery shopping, you can lower expenses without sacrificing quality. There are many grocery stores out there, each with tempting offers on everyday items. Your job is to find out which ones offer the cheapest prices for you.
Websites like MySupermarket are brilliant tools to help you compare item costs. They make it easier for you to plan your weekly grocery shopping and save money.
Well, I hope today's blog post was useful to you. Thanks for reading it, and feel free to share a link to it with your friends!