Getting your finances in order is a challenging feat for a household of any size. Whether this is due to outstanding debt, low income or unemployment, there are a whole number of reasons as to why financial stability may not be attainable. Although it may seem tempting to opt for payday loans during this time, it is important to remember that these are for financial emergencies only, therefore alternative funding will be needed in order to keep to your budget and maintain monthly spending. In this article, we are giving you our guide to mastering your finances in a few simple steps.
Track Daily Spending
Though making a budget for the month is important, it is also imperative to remember to track your daily spending to see where you can save. Whether this is through saving receipts or using a mobile application, tracking your daily spending will help you to better manage your budget and pinpoint the money that you can save. This could mean cutting back on the amount you are spending on lunch or the amount spent during your lunch break.
Pay Yourself First
Another way to master your finances is to ensure that you are paying yourself first. This is key to ensuring you have the money you need in your savings account before spending money on items that are not a priority. By paying yourself first you can ensure that your bills, as well as any other debts or expenses, are paid off on time in order to avoid interest. Though this can be challenging at times, getting into this habit can help you to significantly reduce debts much faster whilst sticking to your monthly budget allocation with ease.
Banish The Treat Yourself Attitude
When you find yourself in the attitude of treating yourself this is when you begin to run out of money. By budgeting your money accordingly and resisting the urge to treat yourself to expensive items, you will find that you will have more money for items that you need such as clothes and food. This is a crucial step to managing your finances as this will help you to resist sudden urges and lean-to better control your income based on the frequent spending habits. It may also beneficial to write this down on paper or on the notes ap- in your phone as this will better help you to monitor these habits.
Reduce The Amount Of Spending On Your Card
Continuous spending on your card can lead to you losing track of how much you are spending. Therefore, limiting the money that you spend on your card can help you to maintain overall spending. By getting money out of the bank when you go shopping, you can then set a cap on the amount that you are spending and ensure you do not go over budget. This is particularly important if you have a contactless card as it is now made even easier to make payments even quicker.
Set Up A Savings Account
The final way that you can master your finances is to set up a savings account. This should be placed on the side to house the money that you put away every month. Whether you are saving £500 a month or just over £100 this will help you to save up money in the long term for expensive items such as holidays or even financial emergency. Not only will this give you the stability that you need but it will also help you to cover unexpected bills or a financial emergency without too much of an effect on your finances.
This is particularly beneficial for those that like to spend on impulse as an automated direct debit can be set up to save a certain amount per month. This will then prevent you from spending the money and can be altered at any time to help you achieve your financial goals.
In addition to this, a savings account can also be put aside for university costs for your children. With a number of different interest rates on savings accounts, you can then ensure that your money is being kept safe allowing you to save for the future with complete peace of mind.
Whether you are looking to save up for a house or you are looking to straighten out your finances at the beginning of the next financial year, there are several options for you to choose. All of which are the perfect stepping stone to financial stability, where will you start?
