The world of finance or at least management of our finances is not something that we are all naturally good at, nobody teaches you at school how to take care of income and expenditure and when you get out into the real world, things can get tough. It happens to many of us, we think we are in control and then an unexpected bill or spend needs to be made and everything goes a little crazy.
I used to be very much the same, living month to month with little understanding of how best to manage my financial situation. I made a few changes, did some research and I can say that right now, I am in good shape. If you want to better manage your finances then here are some tips which worked for me.
Make A Savings Plan
In order to avoid, or at least better cope with, unexpected spending or bills you should try and put together some savings. Let’s say for example that the boiler breaks down in the middle of winter or your car needs to be repaired, how much easier would it be financially if you already had a small amount of money set aside for such events. Naturally you can only save what you can afford to and you should make a balance sheet of your income and your necessary expenditure. From the figure that you have left each month you should aim to save around 30% of it. Once you have your savings plan you need to view the money that will go into your savings account in the same way that you would view rent or bills, this will help you to stick to it. You’ll be surprised at how quickly the figure increases and you will be fully prepared should anything go wrong.
Track Your Spends
You’ll be surprised at just how much money you spend on frivolous purchases and if you want to get in better financial condition then you need to cut down. A great way of seeing how much you spend on such things is to download a phone app that tracks your spends. Every time you spend some money simply log in to your phone and make a note of it. The application which give you a report at the end of the month of exactly what you have spent and what on. Having this information can really help you to change the way in which you spend your money.
Financial planners like Springer financial advisors do not just work for multi-million dollar companies, they can also help individuals like me and you to better manage our money. Financial advisors will take a look at your accounts and offer you advice around things like your mortgage, your energy bills, your income and expenditure and help you to create a solid financial plan. You will have to pay for their services but you should really view this as more of an investment than anything else.