Guest article written by Rob Stone
If you do not learn how to manage your money, your quality of life can suffer very easily although this is also very easy to avoid. Being able to live a comfortable life is something we all aim for so being able to increase your wealth and stay ahead of your money matters is something we should all look to work on, on a regular basis especially if we are in debt.
It can be easier to set a goal when it comes to your finances rather than look at them regularly to check nothing out of the ordinary is occurring or overspending with those trips to the shops which soon add up. For example, if you are looking to pay off a credit card it can be a good idea to aim to save an extra hundred dollars a month to put towards the card and overpay it, which in turn means less interest meaning you will reach your final payment quicker.
When it comes to debt, every penny you save will pay dividends later in life, be it for when you have children or reach your retirement. Credits cards can eat away at your finances very easily at the start until you have two, three or even more credit cards and then realise you are finding it incredibly hard to match the repayments required for each card. As we know, months fly by as they are so it is extremely important they are paid off as soon as possible as the interest you are paying out on top of the minimal payments can easily reach into hundreds of pounds given the right (or should I say wrong ) situation. The feeling of clearing a credit card is a weight off your shoulders so make sure you either watch your credit card finances very carefully or do not even have a credit card unless for emergencies as some.
Aside from credit cards, knowing the status of your finances and how much you have in the bank from day to day is much safer in staying clear from bank charges or fees. Being just 1c over your allowed bank allowance can result in a hefty fee. This may not always be the case as some banks have a variety of methods in charging customers for using funds that they do not have but in general, make sure you do not go into the red at all.
A very simply but effective way to manage as well as save money is to do a weekly shop for the family and not visit the store two or more times a week. It can be very easy to visit the store for tonight’s dinner but also pick up items that are not for that day but later in the week. Visiting again later you can easily forget or just seen items you like the look of which overtime adds up to more than one large visit with a full basket. This can lead to not just a unhealthy bank balance but also an unhealthy life style when as many of us know, you should never go shopping when you are hungry.
If you have many outgoings then a separate bank account just for food can work wonders and give a more visible recognition of how much money has been spent on food that month. If you use your normal bank account, it can be harder to see what has been paid out when looking at your bank statement printed out of internet banking screen.
Rob Stone writes many articles on a range of home and family topics from Money Management and Home Improvements such as Conservatories and their Prices available online.