Many individuals and families live paycheck to paycheck. In fact, people often run short right before their paycheck arrives and they turn to a short-term lender for assistance.
7 Tips for Getting a Grip on Your Personal Finances
This begins a vicious cycle where the loan is paid, the person runs short again during the pay period, and a new loan must be obtained. Although countless people don’t take this step, running short of funds at any time is not fun. There are ways you can get a grip on your personal finances and stop lying to yourself about money. The following are seven tips to help you get started on this goal.
Consolidate Debt
Nothing is more frustrating than discovering you thought you paid a bill and didn’t. The late fees and penalties quickly add up and put your further in debt. If this happens frequently, it may be that there are simply too many bills that must be paid each month.
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An easy way to solve this problem is to obtain a debt consolidation loan. Taking this step not only results in only one debt payment each month but may also be of help in reducing the interest rate that is paid. Look into obtaining a debt consolidation loan from debtconsolidationusa.com today so you can pay your bills on time each month and watch your credit score rise as your debt load decreases.
Hold Off on Purchases
Impulse buys decimate many budgets. The easiest way to avoid making a purchase that is almost instantly regretted is to not buy anything right away. Establish a time frame before the purchase can be made. For instance, if you see a blouse you love in the store, don’t buy it right away. Wait 24 hours and see if it is still an essential buy.
Often, people find they can live without the item they considered purchasing. Not only does this keep spending down, but impulse buys often sit in a closet or on a shelf never to be used. Imagine the space you will have when these impulse purchases stop coming into the home.
Sell Unwanted Items
Now that you have stopped making impulse purchases, it may be time to go through the home and get rid of those items you bought and immediately regretted. Sell these items on one of the many internet forums devoted to this task today.
With the money that comes in, any debt you have can be paid down. You get rid of unwanted items, make more living space in the home, and pay down debt all at once. This task is a winner in every way. If an item doesn’t sell, pass it on to someone in need or donate it. You will still feel great getting it out of your house.
Stop Using Credit Cards
Credit cards should not be used for everyday purchases. Keep one credit card for emergencies and get rid of the rest. If you have a credit card that offers cashback or another reward program, consider setting up recurring bills on the credit card.
Doing so can help to rebuild your credit if you pay this bill each month. An example of this is the cell phone bill. Have the bill charged to the credit card each month. On the day the credit card will be charged to the bill, make a payment to the credit card. The bill is paid, and you get the rewards for doing something you have to do anyway. The boost in your credit score when regular payments are made is an added bonus.
Allocate Personal Spending
No person should have to answer for every dime they spend. If a man wants to go out and buy flowers for his significant other or a woman wants to pick up a cake to surprise her boyfriend after a hard day at work, doing so shouldn’t be an issue.
Set aside money for fun or unexpected expenses for each person. These funds can be spent in any way with no accountability. However, keep this fun money reasonable. While it would be nice for each person to have $1,000 a month to spend on anything they desire, this isn’t reasonable when a person is in debt. Keep this amount low to start. As the debt is paid down, it can be increased slightly.
Shop Providers
When was the last time you shopped for car insurance, cell phone carriers, or an internet provider? Men and women often choose a provider and stick with them for years and years.
Did you know car insurance carriers often charge those customers who have been with them for years more than they do new customers? They take advantage of the consumer’s loyalty. If you shop for services regularly, you might find you save a great deal of money each month.
Determine Where the Money Goes
People often wonder why they are broke at the end of the week or month. They have no idea where their money has gone. To avoid this issue, document where each dime is spent. This can be done with a spreadsheet, an app, or with pencil and paper. Although the process takes time and is tedious, it pays off in the end.
Both partners in a relationship should take this step. What comes to light when all spending is documented is the small expenses that quickly add up. For example, the $1 coffee that you pick up each morning on your way to work is $20 a month over a 28-day period, and this is only true if you don’t stop to get the coffee while out running errands on the weekend. Seeing where these funds go is often a wake-up call for a person or a couple.
It is possible to get a handle on your finances. Try one of these tips today and watch the amazing results. Once progress has been made, it’s easier to take the next step. The motivation comes from being successful in your endeavors. Don’t give up.