You need to develop good financial habits in order to your fiancés stable and be successful. This will lead to elimination of debt, and increase your savings, thereby offering financial security to you and your family. Here are the top 5 tips for getting your finances in order.
1. Control Impulsive Spending
Impulsive spending on shopping, eating and unnecessary purchases can drain your finances, causing instability. You can tackle this problem by monitoring what you spend. Keep a notebook handy for jotting down the times you have an urge to buy something that you don’t need.
Keep track of the urges, irrespective of whether you buy it or not. Next, try to avoid your favorite shopping centre, and instead take up a hobby, such as an outdoor activity. When you do decide to go shopping, it’s a good idea to make a list of what you need. The important thing here is to stick to the list, so that you don’t over spend.
After you have taken all of these steps and still have the urge for impulsive buying, make a strict rule to put it down in a 30-day list. At the end of this period, if you still want the items on it and are able to afford them, then purchase them. However after waiting for so long, and seeing how you have benefited financially without buying the item, you may decide against it.
2. Making Investments/Savings
If you are young, it is most likely that you are not thinking about the future. However it’s a good idea to start making investments, as you will end up having a safety net with extra money, which can only be beneficial. Even if you decide to invest for a little while, you can then place the profit you made into a savings account and it will collect interest over time.
Invest whatever you can, the more the better and this means both your time and money. You could enter an investment plan at your workplace, such as buying shares. This would be especially beneficial if your employer was to match a part or even the entire amount of your investment, this is free money that you just cannot afford to miss.
3. Paying Bills Immediately
There are many benefits to paying your bills off immediately. It is also a good idea to pay them through automatic deduction, or use the bank’s check system to make automatic payments, so that all the regular expenses are systematically taken care of.
If you miss paying a bill on time, you could be charged with late fees. This could lead to a vicious cycle, causing lots of financial stress. You may consider using a short term loan, for example a Wonga.co.za personal loan, to temporarily help you with issues as these.
4. Tracking your Spending
It is not enough to just make a mental note of the amount of money you spend during the month. You need to put it down on paper. This is especially important for those using a credit card or a debit card, as you are likely to spend more when you don’t see the total amount. Keeping a written track of your daily expenditure will enable you to make wiser decisions by being able to identify areas where you are overspending.
5. Sacrificing Small Luxuries
You could try giving up purchasing DVDs or books and, instead, just borrow them from a library. Instead of buying expensive lunches, take a simple homemade sandwich with you to work. If you don’t have the time, prepare it the night before.
Instead of opting for that expensive coffee mocha, why not bring some hot tea to the park? You will be surprised the difference it makes cutting back on such splurging and will surely find yourself on the way to financial stability.