Friday 11 October 2019

Have your financial ducks in a row in 3 simple steps

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.

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.

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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