3 Tips on How to Feel Comfortable with Finances
In the current economic climate many people have been feeling uncomfortable with their finances. I recently wrote about setting a clothing budget. Budgeting is extremely important and here are 3 Tips on How to Feel Comfortable with Finances.
1. Work out what you owe
If you have credit card debts it’s important to first find out exactly what you owe. This might involve checking credit card bills and bank statements and comparing your total balance to your earnings. This might not be a particularly pleasant task but it’s one that will help you to form a realistic repayment plan. The best thing to do is to clear your debts as quickly as possible. This will reduce the amount you need to pay in interest. If you are having trouble clearing your balance it might be wise to compare credit cards in order to find a better deal. A balance transfer card with a 0 per cent interest rate for a limited period could provide you with the time needed to get back on your feet.
2. Start saving
Putting a little aside for a rainy day is easier than you think. It’s always useful to give yourself a safety net in case of any unexpected expenses, but it can also be used for a treat that you otherwise might not have been able to afford. There are a number of ways to save without it eating in to your lifestyle, so it’s well worth discussing your options with your bank or a financial advisor.
3. Regularly check your statement
With internet banking it’s never been easier to check your account balance and stay on top of your spending. If you’ve a smartphone it might also be worth looking in to whether your bank offers an app, as this can allow you to handle your finances wherever there’s an internet connection. When looking at your statement keep an eye out for any outgoings you’re unsure of and if necessary contact your bank to make sure you haven’t been the victim of fraud. It’s also worth cancelling any direct debits you don’t need, so if there’s a gym membership you’ve barely used then don’t waste any more cash on it!
If you’re strapped for cash then it can be worrying but it’s worth keeping in mind than even simple changes can make a real difference.
This article and its advice helped me a lot to improve my life several years ago. I used to be a mechanic, now I finance in a big company, as well as the editor of a financial portal. I also write a book about the use of finance. Thank you!