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Not great at managing your money? Here are some tips!

In Life by eva.katona@yahoo.comLeave a Comment

This is a collaborative post.

Some of us and some of us aren’t good when it comes to money, and for those of us who fall into the second category, it can sometimes seem a big challenge to change our ways! Despite this, simple changes to the way you go about your day-to-day life can really have an impact on your finances.

Here are a few ways that might help you be a little better when it comes to managing your money.

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Start by clearing any debts

Before we focus on how you can have a positive impact on your finances, let’s make sure we’re starting from a clean slate first! If you have any unresolved debts that you feel will be impossible to clear, you’ll be surprised to find out that they can be made a lot more manageable.

Creditfix offer a great service where they run through your finances and debts and calculate how much you can afford to pay off and over what period this would need to be done. The benefit of clearing your debts this way is that you won’t be left penniless at the end of it – you will still have funds allocated to pay for bills, rent, groceries and more. To find out more, simply submit your details on the Creditfix website.

Keep a spending diary

Keeping track of your expenses may sound a little scary and laborious, however by keeping a track of your incomings and outgoings you can quickly spot needless spending, or outgoings which you can get rid of.

Get started by spending an afternoon with your banking app and see if you have any needless direct debits which are going out of your account. No longer using that gym membership? Cancel it. Not really reading your monthly magazine subscription? Cancel it. You’ll find that there will be at least one or two outgoings which can be removed and, no matter how little the amount is, this will have a positive impact on your finances.

Past this, make sure you keep a good track of everything you spend out on, and assess it each week or month to see if you could go without some of it in future.

Choose something to save up for

It’s so much easier to be sensible with your money when you have an end goal in mind. A new car? A new house? A holiday of a lifetime? Pick what it is you can spend some savings on and make sure you always have this in mind when weighing up a luxury spend.

Set up a special savings account just for this – whenever you feel like spending money on a particular luxury item, save away what you would have spent, and you will soon see your savings grow!  You could even go a step further and have a visual reminder of what you are saving for in your purse, just to give you an extra nudge should you nearly buy something frivolous!

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