Tackling Your Finances Like A Pro

We all know that we need to keep our mind, body, and soul healthy. But on top of all of that, we need to keep our finances in good shape too. And of course, there are more than just these ways to manage your money. From savings and investments to paying down your debt. There is plenty that you can do to take control of your finances – but we are going to look at that starting point.

 

A mistake that many people make is to avoid dealing with the financial situation. Spending a little more than they should, often on credit cards, finding themselves only paying off the interest, and it begins to spiral out of control. 

 

The problem is every line of credit that you use, will need to be paid back. And if you are hiding those red bills, or not looking at your accounts, it can quickly get to the point where you need to have a look at https://ezoklahomabankruptcy.com/ to help you manage the situation.

 

So let’s take a look at a couple of options that you have to help you kick your finances into shape.

Photo by Fabian Blank on Unsplash

Financial Overhaul

It’s time to face the music, or at least look at the reality of your financial situation. You’re going to have to look at your incoming and outgoing cash flow. Are you spending more than you need to on things that you really don’t need? Small things like coffee, snacks while you’re out, magazines and other small items – they all add up really fast. 

 

The problem is when you spend three dollars here, and four dollars there, it can feel like you’re not really spending that much. These amounts can add up pretty quickly though. 

 

So ask yourself, do you really need to spend those dollars, or is it more prudent to save and take a flask of cofffe and some sandwiches from home?

 

During your financial overhaul, it is wise to give your bank a call to make sure that you actually have the best bank account and interest office for your situation. It’s time to tackle everything head-on.

 

Start compiling all of the letters, and account details for all of your credit lines, and everywhere you have money. If you don’t have any credit lines and you don’t currently have any debt you can still make sure that you are getting all of the best deals from any financial institutions that you are using. 

 

This goes for pensions, saving plans, investments and anywhere else that you put money.

Budget

Now you have all of the information in one place it’s time to build yourself a perfect personal budget. Start with the basics and go from there. Look at what you have incoming without a doubt every single month. This will be your starting point. Now it’s time to write down every single monthly outgoing that you cannot miss. Make sure to include everything.

 

  • Rent/Mortgage
  • Food
  • Taxes
  • Debts (if any)
  • Travel
  • Utilities – water/gas/electric/telephone/cable
  • Pension
  • Health Insurance

 

Now you have taken all of the main essentials out, you can set the budget that you need to spend and save per month. Everything that is left over between your income and outgoing is officially available for savings and investments. You might need some help looking after your money, but there are plenty of budgetting apps and auto saving apps that can help you get that started.

 

When it comes to auto saving apps there are a couple of choices, and most bank accounts are now offering their own brand version. Auto saving apps are brilliant because they work out what you can actually truly afford to save each week or month. They will then automatically take that money from your account and put it into a savings pot, it’s important to note that if the algorithym notices cannot afford to save they won’t remove the money. And over time if you let this autosaving robot do its job, you’ll find that you have savings built up pretty quickly, even if it’s only a few dollars at a time.

Financial Goals

It’s time to put yourself into creative mode, and create a vision board and make a note of your financial goals. It’s time to spend a few hours or maybe even days thinking about your future. Use a pinboard or a notepad to write down the changes you want to make to your spending, and your saving habits. 

 

Make sure that your goals are very clear and specific. For example, rather than writing, “I want to pay off all my debts”, write something like “I want to pay off X amount on this debt by the end of the year”. When your goals are more specific, they are more achievable. 

Here are a couple of more examples:

 

  • I will save $1000 by the end of this year
  • I will invest $150 every quarter
  • I will put aside $3 a week
  • I will pay off X debt 

 

The trick here is they don’t have to be huge financial goals. For example, you don’t need to save $4000 by the end of the year, you could simply decide on $20 a month. This is a really personal thing you have to look at how your finances work. 

 

The idea of the goals and vision board is to help you keep the focus on your financial goals. Having something to look at keeps us motivated. And if you know you are one for frivolous spending, try to have something on the board that says something like:

 

“Instead of buying coffee to go – I will put those dollars towards the holiday of a lifetime”.

 

This goal is now actionable, which means you are much more likely to achieve it.

Kind

When it comes to money, people are often very hard on themselves. Buyers’ regret is a real thing. During the whole process, try not to get annoyed with yourself that you purchased something years ago and still paying it now. Instead, simply resolve to make what you’re paying a little bit more and pay it off faster. Don’t get down on yourself for how you treated money in the past. Instead, focus on how you’re using in the future and the improvements that you can make.

 

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