Money is vital for most things, and people tend to notice very quickly when they don’t have it. Especially when they’re faced with a financial emergency, they may not have the funds to sort it out immediately. However, a lot of people tend to look at alternative methods of finance like short term loans or credit cards to help see them through. But there are ways that you can manage your finances a whole lot better, and it’s not actually that hard to do. So, keep reading and discover 3 easy ways that you can stay on top of your money!
- Create A Budget
It may seem obvious, but very few people actually do it. Creating and sticking to a budget is a sure fire way of staying on top of your money, no matter how much you do or don’t have. Firstly, you need to figure out exactly how much money you have coming in each month. Then you need to subtract all of your outgoings. The number that’s left is what you can work into a budget, and you’ll be surprised at how easy it is to do. You want to make sure that your budget is realistic, otherwise you’ll find it impossible to stick to. You also need to assess your budget on a regular basis in case your circumstances change. This could mean anything from landing a new, higher paid job or having an increase in your outgoings. Both of these changes will mean some parts of your budget need to be adjusted, so always check it over every few months. After a couple of weeks following your budget, it will become second nature, and you’ll find it extremely easy to stick to. So, stop letting yourself overspend each month and start a budget!
- Know Your Accounts
One of the most important things you can do when managing your finances is to actually know your accounts inside and out. This means checking them on a regular basis and knowing exactly what’s coming in and what’s going out. A really great tip is to download your bank’s banking app as this will allow you to see your accounts whenever you need to. You should also always read through your bank statements when they come through. You never know, you might have missed something when looking on the app at a glance, and you might spot something that shouldn’t be there. You’ll be able to know if any charges made to your account aren’t legitimate a lot easier too if you know your accounts through and through. You’ll soon spot something incorrect and be able to flag it with your bank to get it sorted. So, make sure that you always have access to your bank accounts and make it a regular habit to check them.
- Make Saving A Habit
Saving money is something that most people strive to do, but a lot of the time they fail. The most common method of saving involves putting away a large sum of money each time you get paid. However, this can easily lead to failure if you’re putting away too much and not giving yourself enough to live on comfortably. So instead, what you can do is save little and often. Start by rounding up your purchases. For example, if you spend £9.50, pop £0.50 into your savings. It may not seem like much at the time, but it will soon add up when you do this on a regular basis. You can get banking apps that do this automatically for you as well, so you don’t have to try and remember to do it. You could also forgo one little luxury each week and pop what you would have spent into your savings too. For instance, if you normally buy a coffee on your morning commute, try not buying it once or twice and then put the money away. You’ll be surprised at how much you save long term when you make saving like this a daily habit!
Managing your money doesn’t have to be overly complicated. In fact, these three tips show you just how easy it can be! Start by creating your own personalised budget, then follow it up with staying on to of your accounts, and finally start saving. Before you know it, you’ll be managing your money like a pro and wondering why you never tried these methods out before.