Do you currently have enough money to cover life’s little emergencies? Do you know exactly what money you have coming in and out of your account every month? Do you feel confident in your financial status? If you have not been able to answer yes to these three questions, you have probably lost control of your finances. But, don’t worry, as you can regain your monetary control with these top tips…
- Get to grips with how much money you have coming in every month – There is only one place to begin, and this is by determining how much money you have incoming every month. Of course, this includes your salary, but do you have any other sources of income? Make sure you include everything from child support to a second job. Everything adds up, and you need to have complete clarity.
- Calculate your monthly expenses – Once you have determined your incomings, you then need to decipher your outgoings. Make a list of all of your fixed expenses. This should include the likes of subscription services, utilities, insurance, child care expenses, car payments, mortgage payments, and your rent. Once you have done this, make a list of your variable expenses. This should include everything from grocery shopping to property taxes. You should always round these figures up rather than down, as you don’t want to leave yourself short.
- Subtract your expenses from your incomings – You will then know how much money you have available every month for savings and any other purchases. If you are spending more money than you make, it’s a clear sign that you need to cut back on expenses and make some changes.
- Find out where you can cut back – Now that you have a grip on your finances, you can look for areas where you can cut back. For example, could you save some money on your weekly grocery shop? Perhaps you could reduce your energy bills by calling around to see whether you can get a better deal?
- Pay yourself – Make sure you leave room to pay yourself every month. It is so important to have a financial cushion for emergencies. This can make all of the difference, ensuring you are not blindsided by a financial emergency.
- Stay up to date with financial news – Stay in the know with regards to financial news and blogs. There is always more to learn, and the more you know about money, the better management you will have of yours. Not only is following blogs beneficial for gaining financial control, but for also finding opportunities to make more money. Once you have got a grip on your finances, you can start following the likes of a high return real estate investing blog and blogs for other forms of investment. This will enlighten you to opportunities for making more profit.
- Monitor your credit – Last but not least, it is important to keep a check on your credit score. Your credit rating can impact your ability to get finance in the future. Some people have a bad credit rating without even realising it, so it really is vital to stay on top of this.