Getting a hold on your finances is the key to a more healthy and relaxed way of life. Here are 6 tips to achieve that.
- Pay Off Your Debts
Having full control of your finances means not being a slave to debt. Debt can not only impact the amount of spare cash you have every month, but it can also make you feel burdened when it comes to your finances, too.
The first, most crucial step in taking control of your money is to get rid of any existing debt so that you can better plan your finances going forward.
To better pay off debt, you can consider:
- Paying more than the monthly amount. If you’re only ever paying the bare minimum, then it will take a lot longer to pay off debt, not to mention the added interest build up. Even if it’s an extra $5 on top of the minimum, it’s still a significant difference over time.
- Use any unexpected cash to pay off debts. This could be a tax refund, a work bonus, or if you’ve saved money elsewhere on purchases.
- Do the calculations. Working out how much you have left to pay, and when you could have your debts paid off by if you contribute x amount means you will be more organized and can see the end in sight.
- Set Goals
Financial goals will really help you to stay focused and organized. It also makes it considerably easier to save money when you know what you are aiming for. Whether it’s a goal of simply having a certain amount saved by a certain date, whether you want a substantial emergency fund, or whether there’s something specific you’re saving for like a new car, goals always help to establish financial planning and boundaries.
- Get Rewarded for Your Purchases
You’re going to be spending anyway, so you may as well be rewarded for it. Be sure to look for all the ways you can save money or get rewards on your purchases, such as the cashback potential with Kickback Australia, shown here on this link.
- Be Honest with Yourself About What You Need
Especially during periods of difficulty or low mood, it’s easy to indulge and treat yourself. Everybody’s watching the latest streaming services, so why can’t I? My friends have taken two vacations already, so why can’t I? It’s important to keep a handle on your own lifestyle and your own needs, without comparing to others.
Comparing to others can easily get you further into debt but resorting to quick loans and payday loans that can quickly spiral out of control. Having a strict financial discipline can really pay off in the long term.
When deciding what you need, weigh up the benefits of any purchase. Consider the last time you used something, how you would use it, and whether you can imagine yourself using it, for instance. This can apply to anything, such as subscription services or new items.
- Switch to a More Minimalist Lifestyle
Living more minimally means you only invest in what you need. This can eliminate impulse buys and extreme purchases which may drain your bank balance.
- Organize Separate Accounts
You can’t hope to take control of your money if there’s no clarity with your bank accounts. When using online banking, consider organizing all amounts into separate accounts, so you can more easily view your funds. This could be an account for bills, an account for personal savings, and an account for something specific you’re hoping to pay for.