Making your money last until the end of the month is not an impossible dream. On the contrary, you can ensure that you have more than enough cash to last you through to your next payday. Having a financial action plan in place is one of the most grown-up things that you can do. Making sure that you have enough money in the pot is vital. After all, a lack of money not only impedes on your financial affairs, but you can suffer a great deal in your personal life.
Life is not all about money. But, a lack of it can result in stress and aggravation. After all, money is the route to keeping a roof over your head and food in the fridge. With this, you need you need to have a keen action plan in place so that you can manage your finances in a more realistic way.
You don’t have to stumble from month to month with barely any cash in the bank. Now is the time to take stock of your finances and regain an element of control. You never know, you may even have a bit left over to start a savings fund.
Plan Your Money: It’s Time to Budget
When you first embark on your money managing journey, you need to make a household budget. While this is not the most thrilling of activates, you will have a more detailed view of your household expenses. So, detail everything. Miscellaneous payments shouldn’t generally be added to the budget. If you buy the odd coffee here and there, you don’t need to count this. But, do make sure that you are keeping abreast of what you spend and what you earn. Any shortfalls need to rectify with cost cutting measures and any surplus cash can be used for paying off debts or putting into a savings account. We will cover more on this later one.
You can create a basic budget using a pen and paper. But if you are tech savvy compile a spreadsheet or download and app. It doesn’t have to be akin to an accountants form, but it should be comprehensive enough that you can determine any surplus or shortfalls in your expenses.
Surplus Cash: What Next?
If you have a surplus of cash, congratulations! This means that you are not overspending. Now is the time to assess your debts, if you have them, and look at ways to become debt free. This can be done via loan consolidation companies or by simply paying more than the minimum amount. This is one of the best ways to make sure that you are not paying more in interest on your loans. With this, you can then take the positive step of becoming debt free.
If you don’t have any debts, or you have nearly paid them off now is the time to set up a savings account. Despite the high streets banks offering a less than favourable rate of interest on savings account, it may be wise to shop around. By saving money in the right account you can take advantages of your own cash. You don’t have to stick with your current account to make your cash work for you. Rather, you can shop around and find a rate that makes your money earn even more.
ISAs are the best kinds of saving account. Due to the recession, the rates of interest are seemingly low at the moment but they are a positive way of making your cash work for you. After all, you need to make money off your money and this is the easiest way to do it.
Look for introductory bonus offers that can help you maximise your funds. After all, the bank should not profiteer entirely from your spoils.
Looking into Cash Back
One of the best habits you can get into is looking into how cash back can work for you. Cash back is one of the best ways to save. This can be done via your water bills, gas bills and even your weekly shop. If you have a mortgage, you can enjoy the spoils of cash back even more.
Some of the high street banks are even offering cash back for new customers for money that is spent on debit cards. What’s more, these services are usually free to utilise. Make sure that you do your homework and see the benefits of using this kind of scheme. Of course, it’s not available for everyone. But, if you are eligible, you can see a small return on the investment of your time.
A Shortfall of Cash: Managing Your Cash Flow Problems
Of course, it’s not all good news for some. If you discover that you have a shortfall of cash pending your budget and analysis, it’s time to make some cutbacks.
You may need to shop around for new deals on your utilities, insurance and bills. This is a great way of freeing up cash in the main, to ensure that you have more money to play around with. It may be advisable to see what is eating up your funds. If you owe a lot of money through loans and credit agreements, now is the time to start organising your debt in a more manageable way. Cut up any existing credit and store cards so that they cannot be used again. You need to speak to your creditors directly to tell them about your cash flow issues. By doing this, you may get a temporary freeze on interest until you are back on your feet. You may find that the interest is lowered, or the minimum payment is reduced. Whatever the outcome, one of the best ways to manage your cash is to ensure that you are talking with your creditors. If this is not possible or they are less than forthcoming with a resolution, seek out a consolidation loan to help you with your cash flow issues. This may be subject to a credit report, so make sure that you are a viable candidate so you don’t suffer the heartache of rejection.