How many times have you reached the end of the month only to find yourself teetering on the edge of falling into the red and aching for your pay packet to appear in your bank account? There can be no doubt that spending on credit has reached epidemic levels in the past decade. A credit card is easy to apply for and even easier to use if you keep it in your wallet. The harder part comes when you need to start paying off the balance. Shifting the debt can be tricky when the credit card companies keep you hanging on as an excellent financial resource by offering you a minimum payment that you always end up succumbing to. It’s time to get your finances into gear and start budgeting like a boss. By doing this, you will be able to shift your debt faster, build up a nest egg for a rainy day and even see your credit score improve.
List It All
Although it is the twenty-first century, budgeting begins and ends with a well constructed Excel spreadsheet. Make sure that you list every single iota of income and every single piece of expenditure. This means that frappucino with an extra caramel shot on your way to work every Friday morning and that packet of chewing gum you pick up every day during your lunch break. By doing this, it will become clear where you can shave off the unnecessary expenditure and begin to save those extra pennies. You will be surprised how lots of mini savings soon add up. As you become more confident with your budgeting, you will naturally begin to count every cent like a miser, but in a good way. You will become money aware and make more financially astute decisions. As your debt begins to clear and your savings account looks healthier you will be motivated to continue.
Deciding which debt to clear first can be difficult if you have more credit cards, loans and finance agreements than you can shake a stick at. As a rule of thumb, you should attempt to clear the debt with the highest interest rate first. By doing this, you will be saving money in the long run. If all seems lost and you are struggling to meet your financial arrangements, it’s important to talk to a bankruptcy lawyer rather than burying your head in your hands and hoping that the stressful financial situation goes away. Laws regarding bankruptcy can be scary and daunting, but it can be the best option for some, but only after all other options have been exhausted.
Talk To Friends And Family
Budgeting isn’t an unusual concept; most people try to keep track of their money each month albeit not in such a stringent way. It’s worth chatting with friends over coffee and probing your siblings at your next family meal to see if they have any handy hints regarding budgeting. They may have a knack to save money on transport, groceries or utilities.
Managing your finances can be a daunting prospect especially if you feel like your money worries are getting more intense by the day. It’s never too late to try and rein in that expenditure, shift your debt and budget like a boss.