If you are struggling to
make ends meet by the end of every month, you find yourself relying
on credit cards, and you are lacking any sort of savings for the
future, it’s time to take a look at your finances. Many people bury
their heads in the sand when it comes to anything to do with money.
Sorting out your finances can seem like a steep mountain to climb,
and because it may take a couple of years to be back in the black,
people decide not to bother. However, once you begin on the road to
financial freedom, you will find your mojo and be keen to keep going.
But how do you start? Take a look at these three simple steps that
you can follow to get all of your financial ducks in a row.
Budget
It may seem like an old
school strategy but it’s crucial that you have a stringent personal budget that you can stick to. It may take two or three months to
hone, but you should set up a simple spreadsheet to detail every
outgoing and every piece of income that you spend and receive each
month. Here, you will soon spot those luxuries that you can cut back
on. Do you really need the caramel latte every morning on the way to
work on a Friday as a treat? Cut back on small outgoings like this
that you can live without and you will soon see how tiny savings can
add up to larger amounts that you can put towards credit repayments.
Big ticket items
Big ticket items are not
always frivolous luxuries that you want; often, they can be things
that you need. If the hatchback on your driveway is costing you a
small fortune to run because it is old and forever breaking down, you
need to find a newer vehicle to actually save you money. Don’t
consider buying new and stretching yourself. Instead, head to a
company like Really Easy Car Credit and take a look at their reliable
used vehicles. Here, you can draw up a finance plan, that will enable
you to keep your monthly repayments manageable and within budget
while driving a car that is cheaper to run and more economical on
fuel, tax and insurance.
Credit
If you have store cards
and credit cards, it’s time to get them cleared. Having a large
balance on your credit cards can be daunting, and paying back the
minimum payment each month does nothing but tickle the interest.
Instead, transfer your balance onto a new credit card that charges
zero per cent interest. This way, any payment you make will be solely
towards the balance on your card. As you see this decrease, you will
be more eager to shift the debt. If you have a few credit cards,
consider sourcing a loan that will consolidate your payments into a
single monthly one. This can give you more financial freedom and
allows you to clear your debt faster.
Getting your financial
ducks in a row is not an easy proposition. However, by creating a
budget and paying off your debts over the next couple of years, you
will then have the freedom to build up a nest egg for your twilight
years.
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