Monday, March 20, 2017
Don't Let Your Finances Get Out Of Hand
The problem with money is that it’s no good if you don't keep you eye on it all of the time. In fact, if you don't watch your finances they can easily get out of control, causing you a lot of hassle and stress. So make sure that you keep your finances under control and in hand by following the tips below.
Don't borrow more than you can afford
Really, the number one rule to make sure that your finances don't get out of hand is to not borrow more than you can afford to comfortably pay back.
It really is the comfortable part that matters most here. That is because you can find all sorts of institutions that will lend you vast sums of money, but your standard of living will be compromised if you have to spend most of your budget on paying back loans every month.
Remember, you need to have enough money to go on the odd weekend away, buy clothes and have a few nights out. Or all you will be doing is working, and that is not a recipe for a happy life.
Keep yourself organized
Next, to ensure that your finances don't get out of hand you have to keep yourself organized. That means knowing exacting what is coming in and what is going out every month.
It also means logging what you have spent and checking that everything totals up at the end of the month. It can also help to have information on what you owe and are owed to hand, so it's easy to keep control of everything.
Also, if you are self-employed your finances can become even more complicated. So it's crucial to keep clear records for when it come time to file your tax returns. You can do this by using specially designed software. Which is better than just hoarding all of you recipes in a carrier bag under your desk!
Claim what is yours
Another important part of being on top of your finances is making sure that you claim what is owed to you. This could be in the form of a pension, compensation won for you by an injury lawyer or event benefits such as working family tax credits and the like.
Why struggle, when there is money out there that is rightfully yours? That is just crazy!
Save 10% for a rainy day
Lastly, a vital element of staying on top of your finances, is realizing that unexpected things are going to happen, and you will need money to cover these.
That is why is a great idea to put at least 10% of your salary every money into an emergency fund. Then if you get sick, or lose your job, have to move, or even have a baby, you will have a nest egg to keep you safe and comfortable. It also means you won't have to go into debt to pay for these things, which is where things often get out of hand.