Month-end is overwhelming if being on top of your finances doesn’t come naturally.
It’s easy to fall into a debt trap if you’re not careful, but it’s never too late to take control of the financial wheel.
Here are five ways that you can do this.
Draw up a Budget
If you find that there’s too much of the month left at the end of your money, it’s time to start budgeting. Calculate your income and deduct your expenses to work out how much cash you have left to spend throughout the month.
Make sure you include variable expenses like groceries, toiletries, and gas in your deductions.
Be mindful of deadlines for filing tax returns or paying any amounts due. Consult with professionals about your tax affairs to not miss any payment deadlines or overpay. You may also be entitled to a refund, state Rotfleisch & Samulovitch, so make sure you check everything in great detail.
Build ad hoc costs like gifts or car maintenance into your budget. Once you know what pennies are left after deductions, work out a weekly allowance. Recalculate your budget monthly until you find one that works for you.
Reduce Your Spending
Cut back on money spent socializing or purchasing spoils. Prioritize your needs over your wants, and you may save sufficient cash over a few months to treat yourself.
Making cutbacks doesn’t just mean reducing the money spent on leisure time and luxury items. It’s essential to consider your fixed expenses as well, to try and reduce costs.
Take a look at things like your insurance, cell phone provider, or cable service, and contact other service providers for competitive quotes.
Channel a small percentage of your income into a savings account each month. If you’re concerned about being disciplined enough to save, set up a standing order.
The money transfers to your savings before you’ve had a chance to think about spending it.
It helps to save for something specific. If you identify an item you’d like to buy or an experience you’d like to have, you’ll be more motivated to save your money.
You can still save if your finances are especially tight each month. Keep your small change or coins aside and watch them accumulate into a decent amount.
Earn Additional Income
Turn your hobby or skills into a lucrative side business to earn some extra cash. Whether you take in typing or sell baked goods, you can give your income a welcome boost.
Save this money, pay off your debts, or embark on a shopping spree. Whatever you use the money for is up to you, but the extra pennies will ease your financial burden.
Stop using your credit cards. They’re a convenient fall-back when you need money, but it’s easy to get caught in the credit trap. Leave your cards at home when you hit the shops.
It’s better to rely on cash or debit cards to fund your lifestyle.
When it comes to taking financial control, go at your own pace. You don’t have to sprint to the finish line when you can take baby steps to get your balance.
Keep the end goal in sight, and don’t veer off-course. The extra pennies at the end are worth the wait.