5 Tips To Get Back In Control Of Your Finances

Keeping track of your finances is often a difficult task and a lot of people choose to just ‘wing it’, as opposed to planning ahead but, when it comes to managing your money, making simple lifestyles changes can set you on the right path to taking back control of your finances.

If you’re the kind of person that spends money like a rock star for two weeks and then spends the rest of the month with no expendable cash left, these tips may help you to get a better grasp on your finances. If you can start making smarter money moves now, it may help put your future self in a better financial situation.

1. Write Down All The Details

This is the first – and possibly most important – step in your journey to better money management. It’s not uncommon for people to be completely unaware of how much they are being paid, what deductions are coming out of that, and ultimately where their expendable cash is going each month.

Once it feels like you’ve lost control, it’s easy to neglect to look at your bank statements and throw them straight in the trash. However, this can lead to a huge loss of money as many people will find themselves with monthly bills that they didn’t even know they were paying.

To tackle this, you need to sit down, crack open the bank statements, and really get to grips with what’s going on in there. It may take a few hours the first time you do it, but this will give you a clear picture of what you are receiving, what you are paying, and where you can make those all-important savings!

2. Review Your Monthly Direct Debits

This is a really quick and easy process, but it could potentially save you a lot of money each month. Direct Debits are so simple to sign up for, meaning that many people who sign up for free trials, monthly subscription websites, or gym memberships are paying every single month for something they aren’t even using.

You can usually check your direct debits using online banking or by calling the bank. Check through the list to see which direct debits you actually need and cancel the ones you don’t there and then. It’s a simple way to instantly reduce your monthly outgoings.

3. Review Your Outgoings and Set A Budget

You already checked out your monthly outgoings in step one, right? So you have a rough idea of the amount of money you spend after your paycheck hits each month, but it’s also important to see where you are spending your money and work out how you can arrange your lifestyle to be more cost-effective and fit into a monthly budget plan.

Do you sometimes visit your favorite restaurant several times a week? If so, set aside a weekly amount for your food budget so you don’t end up spending in excess and then suffering for the rest of the month.

The budgeting stage is also a good time to begin thinking about the future. Do you have any debts you want to pay faster or a savings goal? You can arrange your budget in such a way that some of your expendable cash is set aside for this.

Read More: Wealth Creation – Budgeting

4. Set Aside A Small Amount For Unexpected Costs

Even the best budgeteers in the world can’t account for everything, which is why it is a really good money-move to give yourself a little bit of leeway in your budget. You may end up paying more than you expected for bills, or have to deal with some home repairs, but if you’ve already set aside a small amount, things like this shouldn’t totally derail your budget.

And, if the unfortunate doesn’t occur, you will be in a position where you have a little extra cash at the end of the month to enjoy or contribute to your savings pot!

Read More: Budgeting Tips to Help You Save For Retirement

5. Review Any Debt You May Have

Most people have some sort of debt they have to deal with each month. Whether it’s a couple of credit cards or an old loan, there may be a way for you to make your repayments more affordable. Try having a look into debt consolidation or credit cards with low-interest rates that offer balance transfers.

It’s not all that simple to do, but if you have the time to do it, you could end up saving yourself a considerable chunk of money in interest payments. If you’re unsure about the ins and outs of this yourself, you can always contact a financial advisor that can help you with this step.

Taking back control of your finances can change your financial future

Procrastinating when it comes to finances can leave you feeling like you are in limbo, with no hope of reaching your financial goals for the future. If you have a plan in place for where you want to live or what you would like your retirement years to look like, it may be a good idea to get your finances organized sooner rather than later. It can also increase your ability to save and reach your target instead of being stuck in the paycheck-to-paycheck cycle.

Do you need help getting back on top of your finances? Have a chat with an experienced financial adviser like those at Ethica Private Wealth Specialists to find out how you can put our tips into action.