(ThySistas.com) If you are falling behind in your finances this year it can be difficult to see a way out and a way to get yourself back on track. Here are some ways you can take back control of your money and your life too.
Where is your money Going?
If you want to start taking control of your financial situation and getting back in track you need to first work out where your money is actually going every month. Take a look at your bank statement and see what you are spending every day and whether or not there are any things you can avoid spending. For example we can look at your lunch habits during the week and see whether or not you can avoid buying that sandwich and crisps every day, and instead bring food in from home and save yourself some money. It might be worth getting in touch with a tax resolution and accounting firm to help you work out where you can save money and where you need to cut down on your spending.
Cut back
Once you know where you are spending your money every month you need to look at how you can cut down on the overall spending. The first place you will want to look is your non essential spending such as food and lifestyle. For example if you are spending over $100 on food every single week, see if you can drop it down to $80. This will immediately give you a lot more money to spend on other things or to use to pay off your debts. Next up you can look at spending such as your car and phone bills.
These are items which you need but you can always change slightly if you are struggling with repayments. Talk to the dealer and see if you can change your payments or even switch to a different car for the time being, the same applies to your phone. And finally, you can look at how to cut the cost of your energy, mortgage, and bills. Energy can be saved by being more careful with using the heating and water at home and considering options like Bucks County Fuel for more efficient energy solutions. You can remortgage for lower monthly payments and switch your service providers for a better deal. There is always a way to cut the cost of what you use.
Prioritise
If you have a mountain of debt to compete with in your life you need to start by making sure you pay off the worst ones first. Always focus on debts with a higher interest rate first because these are the hardest ones to pay off. Once you have paid of this you can go to the second highest interest rate, and so in until you are debt free.
Pay yourself
It is incredibly important if you are struggling with money that you don’t start lending money to anyone else. Don’t pay someone else any money until you have set money aside for yourself to save. Opening a savings account is a great way to keep money aside for yourself for an emergency and also to accrue interest which you can use later on to help you pay off debts. Make a standing order every time you get paid which automatically transfer a small amount into your savings account.
Budget yourself
The most crucial thing you need to learn how to do is budget your life in order to be able to pay off your outstanding debts. Budgeting can be daunting for you if you have never done it before but it is the best way to get yourself back on track and get rid of those debt hanging over your head. In order to start making a budget for yourself you need to think about what things you spend money on every week.
For example if you always buy your lunch when you are at work, this could be costing you a lot of money every month. To save this money you can think about spending a small amount of time on a Sunday creating a meal prep system to last you for the week. It will be cheaper and healthier than buying food at work. If you go out to the cinema once a month, try to change this to once every two months and spend the other night at home with some popcorn and a film. It is the idea of making small changes to your lifestyle which allow you to save and pay off your debts.
Staff Writer; Sherry Love