In times such as these keeping track of your finances can be difficult. With several monetary crisis happening seemingly around the clock, more and more of us are unfortunately getting used to living on the edge of debt when it comes to our finances. In this article I’ll outline 5 simple steps you can take that’ll help you stay well into positive figures.
Get the best deal!
If you’re shopping around for certain items, never just buy it the second you first clap eyes upon it at your local store. Instead, with all the wonders that modern technology brings us make sure to check a price comparison site to double check whether or not you’re paying over the odds for something you could find less expensively elsewhere. The same can be said for making sure you get the best deal on household utilities like gas and electric, and also for everyday necessities like your broadband or mobile phone provider. For more information on understanding debt and its consequences, check this article from online loan brand Wonga.
Everybody likes spending and very few people enjoy budgeting, but there’s no doubt it’s useful when it comes to keeping control of your finances. You can make your financial position clear by organising a budget, by working out, for example, how much you have to spend before your next payday and also what exactly you are planning to spend money on. One way of budgeting is to set money aside for certain things. For example working out that you have £100 spare for paying the bills, £80 for food and £50 disposable income before the end of the month and organising your planned activities so you don’t commit to anything you won’t be able to afford. Check out this budget planner from Money Saving Expert.
If, at the moment you have no existing debts then think seriously about opening a savings account with your bank. If you have money left over at the end of each month, or even if you currently don’t then set up a standing order to start building yourself a rainy day fund. Having a savings account takes an amount of self-control, and ideally it’s only there to be dipped into or spent on essentials. It’s inevitable that you will be invited for a pricey night out at the last minute when your only finances are sat in your savings account. Whether or not you would accept the invitation is where the self-control comes into play! Take a look at this Money Supermarket article on the best savings accounts.They can come with certain perks and loyalty incentives so make sure (as mentioned earlier) not to just accept the first one you see!
To conclude, it’s our responsibility to keep ourselves out of the red and by following just a few simple steps the chances of every being in serious debt are reduced drastically.
James Eagleton is a freelance writer with experience in business and finance. When he isn’t writing he spends time watching football and keeping up to date on the news of the day.