Studies reveal that money (or the lack of it) is one of the main causes of mental stress for individuals. Getting your finances organised is a skill everyone needs to learn.
How many of us actually know how to manage money?
Unfortunately, personal finance is still not a lesson that is taught in schools but if you think that it is something that it’s not worth learning, you’re mistaken.
By adopting a financially disciplined attitude, managing your personal finances can become fun, easy and more convenient.
Here are some smart tips from the experts.
Getting Your Finances Organized
Pull out your budget once a month
There’s no doubt about the fact that your bills could change on a monthly basis. As the bills come in every month, you should revise your budget and adjust all the other expenses according to it.
For instance; there are some months that bring in a higher electricity bill than others. So, if you take out the budget for the month of June and see that you have a huge electricity bill, you should immediately check the other areas where you can curtain in order to pay off the high electricity bills.
Set a single place for keeping bills
Even though most of your bills come electronically, you actually still require a fixed place to store your bills. Even if they reach your inbox, you will still require organizing them so that you don’t misplace them when you need them. For storing your bills, you can normally write checks or even pay bills online.
Throw out bills once you repay them, preferably after you shred them for privacy. You may also retain the scanned copies in your computer.
Set up automated bill payments
Well, this might sound to be a no-brainer but this actually works! Did you know that a single late payment by a day or two, will make you incur hefty late payment charges and penalty fees? The only way in which you can avoid such late fees and penalties from adding to your scheduled payments, is by setting up an automated bill payment process.
On a pre-fixed date, a particular portion of your income will be deducted and deposited into your savings account. If you can repay your bills even before you see it coming into your account, you can be sure about making the payments.
Stop using your credit cards
Another important tip that you require taking into account is to stop using your credit cards so that you don’t incur further debt. Although the credit cards seem to be one of the most convenient financial tools, you should still be aware of the fact that using your cards will make you incur further debt. Therefore, carry cash instead of credit so that you can control yourself from whipping your plastics.
So, when you’re wondering about the ways in which you can manage your finances so that you don’t require taking any drastic steps to get out of debt, make sure you remember these steps mentioned above. 😉
Take care of your money and keep a safe distance away from debt.