The last eighteen months have certainly opened my eyes, in regards to my own financial situation. I have had to confront uncomfortable truths and make many changes in how i allocate the money i earn. So i thought it might be helpful to take a look at some of the things i learned over that period. Here are my sensible financial tips.
Never Turn A Blind Eye To Debt
Let’s begin with my biggest mistake. Namely, failing to admit i had a debt problem. The only result of acting this way is that your debts go up, and you lose more money through interest charges, fees and more. So never turn a blind eye. Confront your debts, and deal with them the best you can. Make cut backs elsewhere, reorganise your finances, and talk to experts if need be. Do not be embarrassed to do so – they deal with thousands of people like you.
Sensible Financial Tips – Always Maintain A Spreadsheet
You always need to know precisely what goes out and what comes in. To have it laid out in front of you is super helpful. Without a spreadsheet, you may not even realise where a lot of your money goes. And once you can see what you earn and spend, then things may start to stand out for you. Expenses you can cut or get rid of entirely. Money you waste, money you do not need to spend.
Sensible Financial Tips – Save If You Can
Easier said than done of course. But even if you put away some loose change or coppers or a few pounds on a direct debit every week, it can all help. You do not want to go short elsewhere, and as always, your existing costs take priority. But we all need access to funds occasionally, whether for a domestic emergency or a holiday. So it really helps if on those occasions you have some money put away to cover the costs.
Sensible Financial Tips – Remember – Your Costs Vary
You’ll need to budget for items like back-to-school supplies and routine vehicle maintenance in the coming months. You’ll set aside money for things like vacations, birthday celebrations, and other special occasions throughout the year. Regardless of what happens, make sure you budget for such expenses. Pull up your schedule while establishing your spending plan to keep those extraordinary occurrences from sneaking up on you. (Hint: Christmas is back in December this year!)
Make sure to adjust your budget each month as circumstances change. Make an investment fund in which you can put money on a regular basis. You will be focused if you don’t have an arrangement in place.
Cut Up Your Credit Cards#
I know credit cards have their uses, and i have written about this matter in the past. But i will be honest, having been stuck with persistent debt, i am struggling to see the up side of them any more.
If you’re serious about sticking to a budget and staying out of debt, it’s time to put those credit cards away for good. Stop putting them to use! Cut them up, shred them, or use them for an art project! Get them out of your life in any way you can.
Having no credit card debt means no more minimum payments to factor into the budget, no issues with expenses or exorbitant loan costs, and much less strain and stress. Stick to using your credit card (and even cash!) and hurl those Mastercards like a tenth-grade fling. Do you realise what a check card’s most remarkable feature is? The money is taken directly from your bank account!
Set Goals
It really helps to set goals. It helps you drive yourself to lower debt, be more sensible with your money and remove stress from life. A good example is saving for a holiday. You have a great goal there – two weeks sat on a beach perhaps!
And do not get too down if you fail to reach your goals – it is important that you tried. And even partial success is better than not doing anything at all.
Cut Costs
There are a million other ways to save money, and we’ll all do it in different ways. For example, do not purchase bottled water. Any chilled water, including that from your tap, should taste acceptable. There’s no reason to spend money on it. Use coupons, discounts, and deals to obtain the best value for your money, as we’ve mentioned in previous posts. You should never pay the full retail price for certain things, such as books. When purchasing online, use cashback sites to get even more savings. Once in a while, go to a charity shop. The quality of the things on offer may astound you.
