It is always a good idea to be in control of your incomings and outgoings so you don’t find yourself short of cash before payday. However, this is often easier said than done. Here are a few tips that will help you stay in control of your expenses.
1) Take a look at your incomings
Before you can work out how much money you’ll have left over at the end of the month, you need to take a good look at your financial situation. Sit down and make a spreadsheet, putting in details such as how much you receive on a monthly basis. This should include the income of your entire household, so take into account all wages received if you or your partner has more than one job. This will give you an idea of how much money you can be flexible with.
It is important not to get too excited by this stage though, as a lot of money is taken out of pay packets each month for tax purposes, national insurance contributions, student loans and pensions. Don’t forget to calculate all these thoroughly or look at previous payslips to work out how much these should amount to.
2) Examine your outgoings
Then you should gather all your outgoings and calculate what these on a regular basis. The things you should consider are household bills, rent or mortgages, loan repayments, insurance policies, council tax, car expenses including petrol and any other frequent expenses.
Once you have done this, you will easily be able to see how much – if any – you have left at the end of the month. This will highlight any areas that you may have to cut down on. For instance, if you spend lots on your heating bill, you may wish to look into improving the insulation in your house.
Other costs you can reduce include how much you spend on petrol and you should see if you are able to walk or take public transport instead.
3) Save for a rainy day
After you have figured out your outgoings, see if there might be any room for you to save some money. You will obviously also need to take into account expenses such as food, travel and having a bit of a social life. If you do have anything left over by the time your next pay day comes around, it is wise to put this aside in a savings account.
You might not have big plans for an investment purchase at the moment, but this extra cash will be extremely helpful if you have to pay for an unforeseen expense. This may include something breaking down, a failed MOT, a leaking pipe or having to take unpaid time off work.
4) Take out a loan
Sometimes there are things you cannot plan for, and occasionally there are times you need an extra financial boost. In these circumstances, you might consider looking at various monetary options so you don’t fall into the red. There are several products available to you, including taking out a credit card to spread the cost of your payments.
Another option is a bank loan, which can offer long-term financial assistance. Alternatively, if you have just been hit by a couple of difficult months and things are tight for you at the moment, atext loans may suffice. These offer you the chance to get some money to pay back within a short amount of time. Therefore, if you just need some cash to tide you over until payday, these loans will give you a bit of breathing space until your bank balance is restored.