Effective financial management has become more and more important for the average household in the current financial climate. Many people have taken steps to try and streamline their finances in a bid to make it easier to manage their finances and there are several ways in which you can try and do this. Even small steps to streamline your finances can make a big difference, so it is well worth taking out some time to look at your outgoings and your finances in general. Some of the steps that you can take include:
- Log down your finances so that you can keep track of them: It can be very difficult to keep track of your finances if you have no written record of what’s coming in and what’s going out. Make sure you log down your income and outgoings so that you see at a glance where your money is going. Being able to track and monitor finances is often a big part of the problem for many people who struggle to stay on course.
- Reduce the fees you pay: Being charged fees for late-payments on bills and credit cards can be a big issue and very draining on the finances. To reduce the risks of this happening set up direct debits for all of your bills and credit cards so that the payments go out on time and for the right amounts without you having to take any further action.
- Check your accounts regularly: It is surprising the number of payments some people are making without even realizing it, such as magazines or other subscriptions that they had forgotten about. Go through your statements and accounts regularly so you can keep up to date with everything that is going out of your account and make changes where necessary to reduce outgoings.
- Look at your savings accounts: Some of us have several different savings accounts with a little bit of money in each – these may be accounts that we have had for years and in which there is only a small balance. If this is the case, amalgamate all of the balances into one account – even though it may not come too much, there is more chance that it will earn interest in one larger sum than several little ones.
- Be accurate with your outgoings: Some people tend to use approximate figures when logging down their finances but this can confuse matters as it makes it more difficult to see what has gone in and out of your account and what the end balance should be. If you are using your overdraft this could even send you over the limits, as you cannot keep track of your account balance accurately.
Leave a Reply