In today’s economic climate, it is arguably more important than ever to keep track of all your personal finances. Read some of the tips below to get a better understanding on how you can better manage your own finances.
Creating a personal budget
Creating a budget for how much you can spend on bills, the family, necessities and lifestyle, is always a good idea. First start to look at the areas you spend the most money and see which areas are a necessity and which are a luxury. You don’t have to cut back on everything, but you will surprise yourself on how much you can save by either spending less or cutting back on the things you don’t need.
Energy bills can be caught by using energy-efficient appliances like eco-lightbulbs and energy saving devices. Always switch on your heating to a level you need and at times you only need it. Only use electrical appliances when needed and switch them off instead of putting them on standby.
Monthly bills of any sort can be reduced by reviewing different suppliers, then choosing a cheap supplier that has good reviews.
Loans
Money loans coming many different varieties. If you are thinking of a loan you have to do first see if it is a necessity, if you can afford the repayments, then finding a loan with a good interest rate.
It is a common practice for anybody with a mortgage, to change providers depending on the terms of the mortgage and interest rates. If you have a mortgage, make sure you review the terms regularly. If you are not happy with your current mortgage, then seek advice and read reviews on good mortgage lenders to see if you can swap.
If you are hard up the cash, secured loans may be an option for you. These tend to be for people who have goods with worth that they can use as collateral against the loan. This is a good option if you need money fast and have goods you don’t need but are of worth. It is best to read up on each provider and read reviews before you commit to a loan of this sort.
Payday loans are another type of loan that have become popular in recent years. They can work for you but only if you can definitely pay the money back within the agreed time. Only take out a payday loan for a small amount and make sure you pay the money back in time. Only take a payday loan out if there is no other way to access money.
If you have any loans taken out at present and you also have savings, pay off a loan with the savings you have. Most loans have a higher interest rate than savings accounts, so if you pay off your loan you will be better off financially in the long run.
Track your money
Sitting down and working out all your monthly bills and outgoings, compared with your incoming money will give you a quick overview of how much money you will have left to spend on other things in your life, such as clothing, holidays and anything else you can think of. The basic act of doing this will show you how much you are spending and possibly, how much you are wasting.
It is an idea to use an Excel spreadsheet to work out your personal finances.
If you have any yearly subscriptions to any services, this may even include mobile phones, contact the companies periodically to see if they can better your deal and make sure you are paying the lowest price for each service. If you just direct debit the money to the services and never check, you may end up paying far more than you should do. If you contact these companies, always ask for a better deal. Come they will prefer to retain the customer rather than acquiring a new one, so always ask for a better deal on your current service.
Always compare prices when you go shopping. As we tend to all go food shopping at least a few times a week, check the best prices across supermarkets and look for any coupons online you can use. If you are really strapped for cash, only by raw ingredients when it comes to food shopping. Your food bill will be cut by at least a third and you will also learn to be a much better cook!
When you are tracking your outgoings, even though you think you have spent only a little in the month, but still have no money, it will be probably because of those monthly outgoings that build up and drain your monetary resources. Go through all direct debits and standing orders and see if the services are a necessity or not. This in itself can save you a lot of money.
Tracking your personal finances is an ongoing task. Automate any monthly outgoings and make sure you know about every bill payment you need to make. Once you start getting into the habit of managing your own finances, you will surprise yourself with how much money you can save in the long run.
The author has worked as a financial advisor for high Street banks for over nine years. For finding are secured loan with bad credit, you may want to try Bakerfinancial.co.uk.