Keeping close track of your money is something which can really pay off in the long run, as you will know exactly where your money is and how much there is in the event of any emergencies or other sudden cash requirements. Keeping track of money means that bills will always be paid on time, and could potentially mean that your savings will begin to increase as you see places where you could save or redirect money. Having extra savings is always useful, as you can simply keep them for a rainy day, pay off debts, put them into any pension funds you might have, use them to pay for a car, or take that holiday youâ€™ve been waiting for. This article gives ten tips from financial advisors on how best to manage your money.
- Keep a diary of what money you make you can use dedicated financial software for this, or you can simply use an Excel spreadsheet. Before you do anything else with your money, you need to have a clear idea of what money is coming in, what is going out, what savings you have, and so on.
- Set a budget after you know where your money is going, set a budget, be it weekly or monthly. Be honest when making it is it really necessary to have a fancy Starbucks coffee every single day? You most likely donâ€™t, but be careful not to go too far the other way allow yourself some wiggle room for treats in the budget.
- Review your mortgage do you have the best mortgage deal? Moving to another deal can possibly save you either money on the monthly payments, or lead to the mortgage being paid off more quickly.
- Pay off your debts as your budget takes hold, use any money which is left over from the decrease in spending to begin paying off debts, and increase your solvency.
- Begin to build an emergency fund this is different from your savings, which are used for general savings, and for large purchases an emergency fund is for unexpected disasters, medical emergencies, or some other unforeseen event.
- Make the most of employment perks if your company offers benefits as part of the employment deal, make use of them!
- Start a pension\increase contributions It is never too early to begin saving for a happy retirement. Money is what will make you comfortable when you are no longer part of the workforce, so make sure you have it.
- Make prudent investments since savings currently offer little in the way of interest, consider investing. Long-term investments can give much better returns than savings, though they should not replace savings entirely.
- Take out insurance you are your best asset. Insure yourself against illness and death, to prevent any liability problems in the future.
- Increase your income this is the only sure-fire way to bring more money in. Try for a pay rise, a promotion which bring in more money, another job entirely with a bigger paycheque or simply take on a part-time job.
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