How To Manage Your Finances
Our financial health affects a lot of things in our life. If things are looking bad, it can affect our mental health and put a strain on our relationships. However, despite being so essential to most aspects of our daily life, we are rarely taught how to manage them, and that can lead to us needing support for debt. If that’s where you are right now, head to the Creditfix site for some help, but otherwise, here are some tips on how to manage your finances.
Be Aware
One of the biggest mistakes that many of us make is not keeping track of what’s coming in and out and therefore spending more than we had anticipated. Make a list of everything you have coming in, as well as all your outgoings. Add to this money to put into savings, plus an emergency fund in which you are aiming for enough money that would be able to sustain your household for three months if there were to be a family emergency. Set up a direct debit to put the money into savings accounts so that you stick to it – if it feels like a bill that you have to pay, you won’t be tempted to dip into it.
Automate as Much as Possible
You want to make managing your finances as easy as possible. Set up direct debits to pay off your bills so that you don’t have to remember to do them and use apps or spreadsheets to keep track of everything. Try to move the dates of your direct debits so that they come out just after payday. That way, you will be able to see what you have left for the rest of the month and won’t be left with any sudden surprises.
Utilize Online Banking
Being able to check your balance at the touch of a button, without leaving your house, is a huge benefit. You can make sure that any money that is due out or in has done precisely that and move money between savings pots easily. For example, some bank accounts allow you to have little savings squares that you can transfer money in and out of. You can set a target and save towards something or put money in these virtual pots to keep track of your budget to be sure that you don’t go over your allotted spends.
Keep Aware and Assessing
Nothing good can come of ignoring your finances, and even when you’ve set up an effective budget, treat it like a working document. Some months you might notice that you need more in one area or that you no longer need to pay for a particular service. Keep track of what is happening and don’t be afraid to tweak your budget each month to work around your life – birthdays, holidays, Christmas – the exact same budget won’t work each time, so assess your needs at the start of every month and plan accordingly.
