Most people make it their New Year’s resolution to get their finances in order but that can be easier said than done. If you are determined to sort your finances out this year, follow these ten tips to help get you started.
Read Your Bank Statement
Look for reccuring payments. What are they and do you need them? For example, if you have been paying for a gym you have only been to twice then cancel the monthly payment and pocket the money.
Call in Debt
If people owe you money, ask for it back. You could be owed money from a buddy or from a refund you were promised and never received. Ask for this money back if you are able to and it will help you to get your finances in order.
Consider Your Bills
You have to pay monthly bills, but do you need all the add ons as well? They may have seemed like a good idea when you took these out but if you are paying for features you never use then it is time to cancel them and make yourself richer.
Set A Budget
Once you have had a good look at what is going in and going out of your bank account then it is time to set yourself a budget. Try to be realistic, if you cut back too much this could have the opposite effect but make sure you have some money left at the end of your month.
Go Cash Only
To help you stick to your budget try going cash only for the first month. This will give you physical sight of your money and you will be able to see exactly how much you are spending. It will be easier to stick to spending the money in your wallet.
Make Savings Automatic
Understand the difference between your checking vs savings account and how you can use them to accumulate money. Set up a savings account and a direct debit to pay money into it from your checking account every month. You will be surprised how quickly it adds up if you stop thinking about it and you will have the money to hand when you do want to make a larger purchase.
Know Your Credit Score
Find out what your credit score is and make a few changes to improve it. Things such as making your credit card payments on time or better still, not carrying over a balance at all can make a huge difference to your overall score. A personal loan may be an option for you if you cannot pay your credit card. Lower interest rates are an advantage of taking out a personal loan like those by kingofkash.com to pay off your credit cards. A lower rate will reduce the amount of interest you pay, and the time it will take to repay the debt. The better your credit score, the better the terms you will be able to borrow money at in the future.
Learn to Negotiate
If you have been working for your company for a while, then it might be time to ask for a pay rise. State what you have done to improve the company and ask for what you think you are reasonably worth. You may not get the full amount but at least you will have a negotiating point.
Whether you are looking for the best utility provider or a new washing machine, it pays to shop around for the best prices. New deals are added all the time on review sites, so it is worth doing your homework to make sure you stay one step ahead.
Pay Off Debt
If you have debts, try to pay these off as quickly as possible so that they don’t accumulate as much interest. Start with the smaller ones such as credit cards. When you have paid these off, use the money you save to pay down other debts, such as personal loans. Once you start clearing debt you will put more money in your own pocket.
Use these tips as a great way of getting your finances in order this year.