5 Methods to Keep Your Personal Finance in Check for the New Decade
Wednesday, January 22, 2020, 6:00 AM | Leave Comment
Regardless of your situation and whatever anyone tells you, if you happen to be having money trouble there is always a solution to get out of it.
In some situations, it can seem impossible to get out of financial difficulty i.e you’re unemployed, you’re confirmed as in debit or you’re unfortunate to be in both.
However, with the right mindset and utilising the tools at your disposal there are ways to take control of your personal finances correctly without having to worry about staying in the red.
This article looks into options available to you and the steps that you can take to have a healthy looking bank balance again.
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Switch your mindset to keep your personal finance in check
A lot of the time, the reason many of us get into debt is because we’re reckless with how we spend our money. We begin to buy things that aren’t necessary, spend money on occasions that we wouldn’t necessarily attend and simply become lazy with our habits.
Switching your mindset doesn’t have to be about sacrificing things that you love or being strict with a spreadsheet. Instead, all it requires is being responsible with how you spend your money and not spending money when it doesn’t have to be spent. This will obviously be easier said than done, but what’s you begin to get into the habit it soon becomes routine without you even knowing about it.
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Make breaking even with debt your focus
Find yourself in bother with a heap of debt? Then simply getting out of it should be your primary focus before you think about anything else. Being in debt can have both psychological and financial strains on your day to day life. Luckily, this is a common, albeit unfortunate problem for many and there are many guides and help available to you to get you out of the rut, including this useful article on how to get out of it.
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Use automation for your finances
Putting a system in place to help manage your personal finances can be a great way to help with your spending. At the same time, it can also provide opportunities to increase your income without thinking about it.
A good example of this is setting up standing orders for your account to transfer to places where the money is required immediately. Like transferring your money in an account which pays off your bridging loan or into your savings account. From here, you can then manage what money you’d have available for investment and guilt-free spending. This helps worrying about any payments that might be overdue or still requires paying off.
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Start saving for your future
Does your employer offer a pension scheme? Opt into it straight away. What you save now is just as important for what you save in the future. Applying for a pension scheme is relatable to the previous point of saving for your future without you even knowing about it as it automatically comes out of your wage. This gives you the safety net that can help you to look forward to the future.
Another possibility is opening a savings account that’s locked away for a long fixed-term period. This requires putting in a lump sum that generates interest over time that you can’t access.
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Think about methods for extra income
There may be a limit to how much you can save considering your current income, but there’s definitely not a limit to how much you can. The possibilities are practically endless and if you have skills that are useful to others, then the option of having a side hustle is always worth looking into. This will help you to earn more than you already have and increase your income over time.
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Jamie Costello is a business and finance writer based in the UK. He writes for various audiences on a range of topics including debt solution, entrepreneurial advice and business development. He uses his knowledge from education and employment to write his articles.
