Money management might often feel difficult, especially if you have many outgoings each month. If you are worried about debt or just want to improve your financial security, you need to have a detailed understanding of your cashflow so that you can make the appropriate alterations to your lifestyle.
To feel in complete control of your money next year, here are some helpful tips on how to get a stronger grip on your finances in 2019.
Thoroughly Understand Your Debt
Ignorance is not bliss when it comes to your finances. If you want to move forward with your life, you first need to identify the exact amount of money you owe to different lenders. While it can be a little sobering, it may make you think twice about buying an item you don’t really need.
So, review your bills or call up a lender to identify how much money you have paid to-date and how much you have left, so you will know exactly how many years you have to go until you’re completely debt-free.
Make Debt Overpayments
If possible, try to make overpayments on your existing debt so that you can eliminate them at a faster rate. For example, paying £100 extra for your mortgage each month could shave years off its lifetime, so you’ll own your home outright as soon as possible. If you want to overpay on credit cards or personal loans, pay off the highest debt first and work your way down until you have more financial freedom.
Develop an Emergency Fund
Could you cope financially if you received an unexpected bill? If your answer is no, you must develop an emergency fund, so you will have the money to pay for a structural repair on your property, a car breakdown, or a new appliance for the home. Try to save at least three to six months of living expenses, so you will have the money to fall back on should you need it.
Choose Life Insurance
Have you thought about what would happen to your family if you were no longer here? While you might not like to think of the worst, it’s essential to provide your loved ones with a little financial security should you pass away. To do so, invest in a guaranteed issue life insurance policy from Local Life Agents, who require no physical exam or medical history, and it could help to cover the cost of a funeral or any outstanding debts.
Reduce Your Outgoings
It can be hard to overpay debt or develop a savings pot when you have limited money in the bank each month. If this is the case, attempt to reduce or eliminate your bills. For example, ring up your broadband provider to change your package or to negotiate a better deal.
You also could cancel magazine prescriptions or gym memberships, and decrease your spending on clothing, restaurants and groceries. Don’t forget to track your spending too, so you will know exactly how much money you are wasting each week, which could encourage you to make a few adjustments to your finances.