Money is a pretty important of life. Most things we do involve money in some way so it’s strange that we don’t get taught very much about managing our money at school or college at all. This has led to a lot of people not really knowing how to take care of the financial side of life which leads to poor decisions, debts and quite a lot of regrets in many cases.
If you find dealing with your money more challenging than it perhaps should be, follow these simple steps to better money management and change that starting today:
Spend Less Than You Make
It’s a pretty basic point, but if you spend less of your money than you make every month, then you’ll always a have a surplus that you can put into savings, invest or simply just keep you from being tempted by loans and credit cards. The easiest way to consistently spend less than you make is by writing your own household budget and in order to do that, you’ll need to track your spending using an app, like the ones at https://uk.virginmoney.com/virgin/living/article/top-5-budgeting-apps.jsp spreadsheet or even pen and paper for a month to identify your spending trends. You may need to cut out a few extras that you don’t really need (gym membership, Sky TV, all of those posh coffees) but it will be worth it in the end.
Diversify Your Income Streams
Having more than one source of income means that if you should, say, lose your job, you will still have something coming in to help keep you afloat. This doesn’t mean you need to get another job (unless you want to) but you could set up and monetise a blog, start your own online business or even rent out the spare room – anything you can do to increase your income will help.
Fix Your Credit Score
If you have a low credit score and you need to, for example, take out a mortgage, if you can get one, it will be at a much higher interest rate than someone with identical circumstances, but who has a better credit score, and that will mean that you have to spend more of your income on interest. So, if you want to be able to minimise the cost of big future expenses like that, visit http://repair.credit/best-credit-repair-companies/ and start sorting your credit score out today. It may take some time, but it will be worth it for the cheap credit you can access when it is vital that you do so.
Automate Your Finances
If you want to avoid getting behind on your bills and getting penalised because of that, it makes sense to set up direct debits that will automatically pay the minimum in a timely manner. You might want to do the same for savings too because if you have a sum deposited into your savings account each payday, you won’t miss it nearly as much and you’ll be far less likely to spend it frivolously to boot.
It’s pretty easy really, isn’t it?