You would not be alone if you would like to feel that you have a better grip on your finances than you currently have, as this would allow you to enjoy a calmer attitude towards money once you know that everything is taken care of.
Whilst you might crave this sort of financial nirvana the reality for plenty of us is somewhat different, but it doesn’t have to be like that and you can find a way to take greater control.
Here is a look at some quick fixes and strategies that should help improve your financial outlook. Including an overview of how to boost your credit score, plus ways to take control of your money and a convincing argument for leaving your credit card at home.
Improve your profile
If you miss a payment or find yourself a bit overstretched with your finances there is a good chance that lenders will get to find about it, as this is the sort of information and opinion that forms part of your overall credit score.
There are many different credit scoring systems used by finance providers but they all do much the same thing, which is to rate how you handle your finances and give any opinion on your creditworthiness in the form of a credit score.
If you have a low or bad rating it can prove very difficult to get any sort of loan or lines of credit.
You can read these books about your credit score to understand a bit more about how it all works and find some hints on how to improve your rating if it needs a boost.
Some basic things you can do to improve your score include paying all of your bills by the due date and resisting the urge to use all of your available balance on your credit card without paying it off at the end of the month.
Your credit score is a key part of fixing your financial position so focus on ways to improve your rating and it will improve your money management skills at the same time by making you more organized and aware of the importance of behaving prudently and responsibly when it comes to money.
Cut out the unnecessary purchases
If you use your credit card regularly when you are shopping it can often feel like you are not really spending real money when you charge a purchase to your card.
Lots of people subsequently get a shock when they get their credit card bill, not realizing that they had spent that much throughout the month.
A good solution would be to go through the list of purchases on the statement and identify which transactions were not really necessary, frivolous or just unexplainable. You can’t do anything about what you have already spent but it should provide a sobering lesson to try and avoid being so wasteful with your money.
Try drawing cash out for a night out or when you go shopping and leave your card at home. You will be amazed at how prudent you are with cash compared to your credit card. This change could transform your finances and reduce your spending by a big number, which means more money left in the bank.
Other worthwhile tips that will make a difference include checking your insurance and utility deals regularly to see if there is a better deal available elsewhere and using an app on your smartphone to track your spending so that you have a better handle on where your money is going.
Jake Davies shares his tips and tricks to managing better finances through his articles. He works as a personal finance consultant and has his articles published at a range of finance related blogs.