Do you feel out of control when it comes to your finances? You’re not alone. Many people feel like they have absolutely no control when it comes to their money and what they’re doing with it. They buy things they don’t need, spend on impulse, and end up feeling really bad about their decisions when they realize they haven’t got enough money for something important. If this sounds like you, you need to decide to take control of your finances once and for all. The super simple tips laid out in this guide will help you to do just this:
Download Budgeting Apps
You need to have an accurate picture of what you have coming in, what’s going out, and any other relevant information to do with your finances. Budgeting apps are a wonderful way to do this. Many of them can link with your bank accounts in real time, so you can see exactly how much money you have. They’ll also make you graphs of where your money is going so you can see for yourself where you need to cut back. Some apps will also help you to set savings goals so you can stay focused.
Set Savings Goals For Yourself
We have just briefly touched on savings goals, so think about what your savings goals should be. Everybody should have some money saved, otherwise you’re just living paycheck to paycheck. This is quite anxiety inducing and not healthy at all! Even if you set small savings goals for yourself, it’s better than not saving any money at all. Here are some ideas of savings goals you could use:
- Save 10% of your income each month.
- Save up three months worth of expenses as a cash cushion and leave it alone.
- Set up a direct debit so you don’t even have to think about saving money.
With some budgeting and banking apps, you can even set out specific savings goals and then add money into the pots. Say, for instance, you want to go to Spain, you can create a tab titled ‘Spain’ and add money to it until you reach your savings goal.
Can you create a savings plan to help you to meet your savings goals? For example; set up a direct debit so you don’t have to think about it, cut back on expensive items you don’t need, etc. See if you can create a simple plan that appeals to you. If you're unsure, you could always go to speak to a financial advisor.
Figure Out Where You’re Wasting Money
Take a good look at your finances and see where you could be wasting money. Chances are, you can cut back in a few areas at least. Perhaps you’re spending more money than you need to on your car insurance - you can compare cheap car insurance online. Maybe you’re buying expensive coffees a few times a week. Maybe you’re making multiple trips to the supermarket when it would be easier to make one and take advantage of vouchers you can use when you spend a certain amount of money. Maybe you’re going there hungry, or with your kids, and spending way more than you need to. Look at your habits under the magnifying glass!
Make Yourself Wait Before Buying Anything
When you get the urge to spend on impulse, force yourself to wait. You know you don’t need this item right now, so make yourself wait at least a couple of weeks. If you still really want the item after a couple of weeks, you know that you can buy it and it won’t be a novelty. If you forget about the item, then you would have spent your money for nothing. This is a really good habit to get into. You can use browser add ons like ‘Thinkover’ to save items you’re thinking about buying so you can look at them again later on and make your decision.
Get Out Of And Stay Out Of Debt
Being in debt is a horrible feeling, so make sure you aim to get out of debt and stay out of debt. There's a solution for everyone, but if you’re unsure, ask a financial advisor. Before saving money you’ll want to pay off your debts, as they’ll be charging your interest.
Deciding to take control of your finances when you feel out of control is a bold move, but you know it needs to be done. How are you going to take control? Leave a comment!
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