Handle Your Finances At Home With Ease06 Mar 2021
For many people who are not financial professionals, dealing with finances can feel like a chore. They find it boring, and sometimes scary, especially at the thought of discovering that they don’t have sufficient money in the bank to pay the bills.
Willfully ignoring your finances will get you nowhere, though. Managing your money is essential at all times, even more so during periods of economic uncertainties. You’ll want to avoid any unwanted surprises by ensuring your cash flow remains sustainable in the coming months.
Try these simple steps to get started:
1. Utilise personal finance apps
Managing your finances is now easier than ever, thanks to the plethora of personal finance apps available to help you save money, track your expenses, create a budget, take photos of your receipts, and more. And many of these apps can be downloaded for free!
Check out this link for some of the best personal finance apps that are worth trying.
2. Set goals for the household budget
A budget is perhaps the most important tool for managing your money and sets the foundation for your household’s finances. It gives you a sense of control over your funds by showing you how much comes in, and how it is spent. This information can help you determine your household’s small and big picture goals, and get the most out of your money.
Once you’ve decided on a budget, be sure to stick to it. You can adjust the amount from time to time, so long as it is one that you can comfortably manage every month.
3. Limit your credit card purchases and credit limit
A credit card is a valuable tool - IF you know how to use it responsibly.
Use your credit card only for big purchases, or as a backup for your emergency fund. Each time you use it, make sure to pay it off every month or over the course of a few months under a strict timeline. And don’t use your card for other purchases until you have paid off the earlier one in full.
If you are concerned that the credit limit you have is too high, you can request your credit card company to have it lowered to a level you know you can manage. This will help you avoid the danger of overspending.
4. Commit to automatic savings
Each time you receive your monthly salary, do make it a point to pay yourself first by setting aside a certain amount into your savings.
Saving is a critical part of responsible financial planning. It keeps you financially secure by providing you with a safety net during financial emergencies. This in turn helps you reduce financial stress and avoid debt.
If you find it hard to save, put it on autopilot so that you don’t have to think about it. Sign up for an automatic savings plan by arranging for your bank to transfer a fixed amount of your choice from your salary account into your savings account.
5. Don’t commit to new recurring monthly bills
This relates back to your budget, as highlighted in point number two.
Don’t take on any new financial commitments that will unnecessarily put a strain on your budget. Even if your income qualifies you for a certain loan, it doesn’t mean you should take it. Your top priority is to ensure that you do not burst your monthly budget.
Taking the time to properly manage your finances can really pay off in the long run. By implementing these few simple steps, you will gain control of your financial future and more importantly, have peace of mind.
There’s one other thing you should also do - shield your finances from any potential setbacks with a good insurance policy. Gibraltar BSN has a wide variety of plans that cater to different needs and budgets. Browse through our range of protection plans here.