Whatever your income is, knowing how to get the most out of every cent you earn is crucial to being financially independent, and it gives you the freedom to concentrate on the important stuff in life.
Becoming financially organized and leaving your money worries behind is the best thing you can do for yourself and your loved ones. Here are our top 5 suggestions how you can make first steps towards this goal starting today.
You need to have a budget
Determining your precise incomes and expenses is what you need to start with. It is pretty basic and straightforward but and if you already have this system in place, it is a good sign you are on the right track. However, there are so many people out there who spend their incomes without any plan. Once you write down how much you earn along with all the things you have to spend your money on every month(bills, rent, gas, etc.) you will know how much money you have left over for entertainment, holidays or savings. Being completely aware of your expenses will put you in control of your finances and help understand are you actually spending the cash on the right things.
Pay your bills on time
Missing bills payment deadlines is one of the mistakes you cannot afford. And unfortunately, a lot of people will do it because they lose them or simply forget about them. Not just that you will have to pay two bills at once, you will also be charged for the late payments fees. This is the money wasted by you. So what can you do? Take advantage of setting up a direct debit. You will in no way be out of financial control as you can always check your statement and make sure correct amount of money is being deducted every month.
Let technology become your ally
Not just that it will save on paperwork cluttering your home, online banking can help you to keep up to date with your money and what has been happening on your account. All you have to do is just ensure that you check amounts are correct on your bank statement each month.
Have a “reminder system” set up
It is hard to keep track of all the expenses we pay for, but if you do not, you will end up paying a lot of late fees. If you are not into creating a direct debit, create a reminder system (online calendar) on your phone or laptop, so you do not miss any deadlines. You can use Google or Outlook calendar, and it will send you regular reminders on certain days, and you will never miss paying a bill.
Review your finances once a week
It will not take you much time, once a week take 30 minutes and go through your financial week. Review all the expenses, make sure all the bills are paid for and see if you are right on track with your savings. What better way to stay organized with your finances?
These are just five simple tips to start with, but we are sure you have some of your own to share with us. Let us know, what helps you to keep your finances organized and bills paid on time?
Manigo Team, June 2017