Better money management tips and tricks
If you are regularly finding yourself short of money, sooner or later you’ll realise that you cannot sustain this. You will be falling deeper into debt and not getting out of it. This ruins your credit history and your chances for getting bigger loans such as car loans or mortgages.
Don’t let the ball and chain of bad credit drag you down. As a responsible lender, Smallloans.com.au wants all of its customers to excel with their finances. That’s why we present some tips and tricks to help you better manage your money.
Set up a budget
If you have lots of money problems then you probably need to set up a budget. This means calculating all your income and figuring out what parts of that income pay for your regular and ongoing expenses. Lucky we live in the age of the internet and don’t need to figure out sums on the backs of envelopes. There’s lots of programs and phone apps you can use to set up your budget and stick to it. You can choose from packages such as Quicken, Moneydance and YNAB, which literally stands for “You Need a Budget.” In this day and age, it’s never been easier to create a budget and track your progress.
If you want to stick to your budget, you will need to plan your spending as much as possible. Though we might try hard to keep things on track, sometimes life throws a spanner into the works. We find ourselves having to come up with far more money than we have on hand. This is how a small cash loan can help. Read one of our other blogs on how they can help you with emergency expenses.
Don’t over extend yourself
One trap lots of us fall into is spending money on little things and not realising they all add up. For example, if you drink two coffees each day you go to work at about $4 each, that’s $8 a day. Add that up for the week, and that’s $40 a week. A whopping $160 a month! Using your budget, you’ll figure out where you can make savings by cutting back on services and things you don’t really need now and can defer until later. If your budget reveals more money is going out than going in, you’ll definitely have to take the razor to your spending to get back under that cap. Many financial websites and magazines suggest that living on 75% of your paycheque should be your ultimate financial goal.
Separate your savings from what you need to spend
This takes a bit of setting up with your bank or financial institution. But it’s worth it. Basically, to stop yourself from spending too much on unnecessary things, you need to stop it at the fountainhead. You should make most of your savings difficult to access. That means separating your emergency or “rainy day” savings from your everyday credit or debit card. If you have a card that has access to your credit, savings and cheque accounts, it’s tempting to use it on almost everything. Some banks and credit unions offer high-interest bank accounts that reward you for deposits and not making withdrawals.
If you aren’t saving, you’re paying off debts
The best rule to save money is put away at least 10% of your paycheque into the untouchable savings account you’ve set up. However if you have lots of debts, it’s best to pay them off sooner rather than later. Using your new budget, you should aim to pay off your debts using any left over money that isn’t going into savings. The less you spend each week, fortnight or month may get you over the line to becoming completely debt free quicker.