5 tips for getting your personal finances under control

April 20, 2015

Money

Getting your personal finances under control is very easy to say, but not necessarily so easy to do. If you’ve battled with badly managed bank accounts for years, breaking the habit and getting to grips with your spending can be a real challenge. Luckily, help is at hand. By following these five tips, you should stand a better chance of achieving this goal.

1) Be a bargain hunter

One top tip is to make sure that when you’re looking for products and services, you always seek out the best possible bargains. For example, it’s crucial that you find competitive insurance policies. As expert brokers like Chill Ltd note, certain forms of financial cover are a must. If you have a mortgage for instance, your lender may require you to have home insurance as part of your loan agreement. By searching the market to find the most impressive offers, you stand to save yourself a tidy sum. The same principle applies to your utilities. By switching provider, you might be able to cut your spending significantly.

2) Create a spending spreadsheet

OK, so it may not be the most thrilling task in the world, but it’s a good idea to sit down and create a detailed list of your incomings and outgoings. This way, you’ll have a clear idea of how much money you can spend, and you’ll know if you’re splashing too much cash.

3) Exercise some self-restraint

A little self-restraint may be required if you’re to nurse your finances back to full health. No matter how tempting that new phone is or how enticing a trip abroad may be, make sure you stick to your budget. Don’t borrow extra cash to finance purchases or take on additional debts until you’ve repaid any that you already have. To boost your self-discipline, it might help to cut up some of your store cards and credit cards.

4) Be savvy when dealing with debts

Dealing with debts can be incredibly stressful and you might dread looking at your statements. However, it’s important that you don’t simply put your head in the sand and hope they go away. By being savvy and organising your repayments, you should be able to clear your debts much more quickly. For example, focus on paying down your high-interest debts first, and set targets for when you’d like to clear individual debts by. Having this focus should help you to reach your goals.

5) Try to increase your income

You might be able to revive your flagging finances by increasing your income too. For example, perhaps you could negotiate a pay rise in your current role, or take on a second job to supplement your earnings. Another way to up your income is to sell possessions that you no longer want or need. Websites like eBay and Gumtree provide the perfect means of generating money in this way.

Getting your finances under control may not be easy, but by following suggestions like these, you should be able to achieve your aim. It’s certainly worth making the effort. By reaching this goal, you can give your peace of mind a major boost..