Does it ever feel as though you seem to be spending out more money than you are getting in? If you are finding that no sooner does money go into your bank account, it goes straight out, it may be time for a money-makeover.
Money can be a significant cause of stress and anxiety for many people, and maintaining a healthy relationship with your finances is essential to your mental health. With this in mind, it is worth taking the time to review your finances and see where you can improve the way that you handle your cash.
Create A Balance Sheet
Go through your outgoings and list them all. You may need to use your bank statement to remind you of where your money is going to. If you make a spreadsheet using Google Sheets, then you can keep this list updated as things change.
Highlight any priority payments such as mortgage or rent. If you have any loans, credit card, or store cards that need to be paid, list these.
Then list your utility bills, transport costs, and food expenses. You may need to look at a few months worth of food and transport costs to find an average spend.
Then, in a separate column, work out your income. If the amount that you have coming in changes each month, then you should list the minimum that you are likely to receive.
If the amount that you have coming in each month is not much more or is less than the amount that you have going out, then you need to look at reducing your expenditure.
Take Out A Loan
If you have existing loans and credit cards, you may want to look at paying these off with one single loan. Here are some examples of loans that you may want to take out to consolidate your existing lines of credit.
Be aware of interest rates. Quite often, it is easy to look at the total loan amount and forget about the interest that you will need to pay on it. Make sure that your interest payments are lower than your existing loans or you will end up paying out more overall.
If you clear your credit card, cut the card up and close the account. If you are someone who is likely to get tempted to spend on an empty card, then you should remove the temptation.
Finding Ways To Save
There will be lots of opportunities to save money in your outgoings. Firstly, look for things that you are paying out for that you do not need. For example, if you have subscriptions or memberships that you are not getting the full benefit of, then you should cancel these.
Switching your utilities such as electricity, phone, and broadband may be a great way to save a considerable sum each month. Often these prices slide up after you have been using the service for some time. Shop around and find cheaper suppliers.
CANDY TAI is a wife to David and mom of 5 with a degree in Communications. She's a native Texan (Hook 'Em Horns!) who's been making her home in the Kansas City metro area for nearly 15 years. She loves being able to shuffle her kids from their various sports activities, piano lessons, and school activities. She enjoys fashion, beauty, reality TV, and moviegoing.