Here are 4 tips to help you take control of your finances provided by Chrissy Gladstone. A lot of us struggle with our finances and it’s always great to find out how to take control.
A research has found that some Britons have no long-term financial plan for savings and investment goals. According to a study conducted by the Bank of England, 27% of citizens in the U.K. have no form of emergency savings. In fact, another survey claims that less than half of working-age residents have £100 in their current savings.
Taking the time to manage your monthly income can help you pay off current debts and prepare for the unexpected emergencies that can happen at any moment. Not to mention, you can give yourself an early start towards your pension or save for your dream vacation. So how do you get started?
Here are 4 tips to help you take control of your finances.
Set the Budget Straight
One of the best ways to build financial wealth is to create a budget calendar. Understand your total interest rates, calculate your monthly and annual income, and monitor your net worth. It will take a little bit of effort, but it is a great way to understand how much money you have coming in and how much you spend going out.
When setting up a budget, you will be:
- Less likely to build debt
- Less likely to spend on unplanned expenses
- More likely to improve your credit rating
- More likely to get approved for a loan or mortgage
- Able to make better savings in the future
Starting your plan with a clear budget will give you a better picture to see the major expenses and a better opportunity to save money. In addition, it will also help you see whether you are living within your means.
Get Technical With Your Budget
Most of us use our gadgets for everything – staying in touch, playing games, watching videos, and even searching for the next family recipe. So, why not use your smartphone to stay in control of your budget? Using tech apps can help improve your finances and reduce the stress of financial planning. There are some great budgeting apps available online. Just be sure to follow the appropriate security measures when giving out personal details online.
Pay Off Credit Cards and Loans
Credit cards are a great way to build credit and make large purchases instantly – that is until you acquire debt. While this step may take years to finish, you will be able to pay off your credit card and loans for good. From there, can you start saving for future goals as well as feel less stressed when your bills are due.
Once you have finally established a hefty saving, now’s the time to figure out what to do with it. One of the most common mistakes many of us make is to leave it as it is without much profit in return. Make a plan to put your savings to good use. You might want to invest in stocks, real estate property, or shares in a growing startup.
The hardest part of paying off your debt is taking the initial step. It can be easy to feel overwhelmed once you realize how much you are spending every month and tempted to ignore the growing demands for payments. However, once you start taking control of your finances, you will slowly begin to pay off what you owe and work out what you need to accomplish next.