Are you spending more than you should be, drowning in debts or struggling to save some money for the future? Well, we have better solutions that could help you deal and manage your finances in a much easier and simpler way.
The steps below are meant to guide you with your money and hopefully help you manage your financial situation.
Step 1: Write down your financial goals, these may include taking a long vacation, buying a home, starting a family or even retiring. Keep in mind that all of this depends on how you use your money now.
Step 2: Short-term goals
Limit the number of times you order take-outs because before you know it you’ve spent more than you had budgeted. Dinner dates are fun but, at least once or twice a month. Close clothing accounts that you do not use. It is ideal to save up money and buy stuff cash to avoid unnecessary debts or being blacklisted.
These may include paying off your home loan, car, student loan and credit cards.
Step 3: Draw up a financial plan and make sure to prioritize it. If you still have unpaid accounts mark those as important so that each month you remember to deposit a certain amount until you settle the account.
Step 4: Putting your plan into action
Once you’ve drawn up your financial plan, draw your spending plan and a monthly budget plan. Check your progress after a few months to see what you have accomplished. Think of your long-term goals like what will you do after you retire perhaps start a business to help you gain more income. But do not approach the bank for a business loan, everything should come from your savings because you are on a spending plan.
Step 5: Sticking to your budget
Not sticking to your budget can easily break you. Following your spending plan is key to financial freedom. Do not be afraid to ask excepts for any financial advice because that will also help you manage your finances well and hopefully stick to the budget.
Step 6: Settling Debts
For the past months, you’ve written down your financial goals. This is the time where you evaluate how well you have done. If you have been on a strict spending plan and you’ve accomplished that congratulate yourself. A spending plan was a way for you to eliminate unwanted expenses and now it gives you a space to breathe and pay off the last remaining debts.
Invest in your future, clear all your debts and live happily ever. Another wise thing to do is to clear all your accounts in arrears as soon as possible because that might increase your credit score.