If you’re like most people, gaining control over your finances can be daunting at best. With expenses mounting up each month, putting money aside for savings or even staying on top of your bills is seemingly impossible.
Though getting things under control may seem difficult, it’s easier than you think. You just need to know where to start. Here are personal finance tips you can use immediately to regain control of your finances and set yourself up for future financial success.
Build a Solid Budget and Stick With It
The best thing you can do for your personal finances is to set a firm budget. Look at what you spend each month on average. Write down and total up the expenses that you absolutely have to cover every month. This can be rent or mortgage payments, utility costs, insurance premiums and anything else you need to live your life comfortably. Then, total up how much money you’re bringing in each month from your job and any side-hustles you have. Ideally, you should spend less each month than you’re earning.
Once you have those numbers in mind, start thinking about your financial goals. If you want to start saving GHC100 each week, look for expenses you can cut out or decrease to make that happen. Whatever you decide, make sure to stick to your budget each month. The more you do, the easier it will be to achieve financial freedom.
As you go, you’ll want to keep track of what you’re spending each month. This way, you’ll know whether you’re sticking to your budget or going over on certain activities. The closer you monitor things, the easier it will be for you to make corrections each month.
Save for Emergencies
Most people find it hard to pay for unexpected repairs and maintenance when little things pop up. This often leaves people searching for loans or forces them to use their credit cards to make ends meet. Instead, start saving for those emergency expenses now. All you have to do is set aside some GHC20 each week and put it in a savings account where you can’t access it unless you need it. Over time, you’ll build your emergency fund up so those unexpected expenses won’t derail your budget or force you to take on additional debt.
Find Ways to Lower Your Costs
Believe it or not, most people overpay on rent and auto insurance policies every month. Most insurance providers are willing to lower those monthly premium payments, but they won’t do it automatically. You have to be willing to ask for discounts.
Start calling your insurance providers and discuss your options. Shop around and get the best insurance quotes online. See if your current provider will offer a discount if you bundle your coverage or ask them to match a lower quote you find through a different company. If they’re not willing to give you a discount or you don’t qualify for them, you can always lower your out-of-pocket costs by increasing your deductible. This will keep your monthly premium payments lower as long as you have the policy.
Keep these tips in mind and you’ll be able to take control of your personal finances each month.
Author: Kevin Devoto