As an adult, it might feel as though all you do is look at your bank account and feel stressed. You have to make sure there is enough money for all the things that have to be paid for, but you also want money left over to have fun with, take the children out for the day, or just to save for emergencies or another large purchase. Sometimes it can feel as though getting all these things done is impossible.
It doesn’t have to be so tough, though. If you can handle your money better, you can ensure you have enough for everything, or at least know that you need to increase your income because you don’t have enough. That’s why it’s so important to get to grips with your finances as soon as possible, by using Saijelle’s personal finance ratios so you can make changes that will benefit your life. Also, read on to find out what else you should do.
Make A Budget
One of the reasons why working out your money can feel like such a struggle is that you don’t know what is being paid when, and you can misjudge how much you have to spend on other things because of it. This is why a budget should be the first thing you do if you want to handle your money better.
Your budget will tell you how much you’re spending, and you can offset that against your income, letting you know just what is left over. Is it enough? If so, that’s great, but if not, it’s time to make changes. A budget will also let you see if you’re paying for anything you don’t need any more; it’s so easy to pay for a subscription or membership, for example, that is no longer required.
Consolidate Debt
If you find that you don’t have any ‘spare’ money to save with or spend on things you want rather than need (although this is not essential, it can be good for your mental health if you’re careful about it and it’s in your budget), then you have two options. You could look for a better-paying job (or start a side hustle), or you could reduce your outgoings. One of the biggest outgoings most people have is debt, and reducing or eliminating that is great for your finances, credit score, and even mental health, so it’s a good first step to take.
Taking out a loan to consolidate your debt and reduce your monthly payments is an excellent idea and one that can help immensely. Logbook loans offer plenty of options, and since you use your car as security, your credit score isn’t as important as it would be with an unsecured loan, meaning that you’re more likely to be successful in your application.
Once you have consolidated your debt, you can use the money you save each month to pay off the rest of your borrowings more quickly, or you can put it to one side and save it up, depending on what will help you the most.
Create A Plan
Once you have a budget set and you know exactly what your spending is every month, it’s time to make a plan. The plan will include all the financial goals you might have and the steps you need to complete to reach them. This could be to get out of debt, to save for something like a house deposit or a holiday, or to be able to go out once or twice a month without counting the pennies. Whatever it is, if you have a plan to get there, you’ll feel much more confident and motivated, and you’ll be better able to reach your goals.
