Effective money management can mean a number of things, from getting out of debt, to saving for the future, and is essential for ensuring the health of your finances.
Here, we give you a guide to some helpful tips for managing your money, so you can get on top of your finances and make the most of your money.
Make a Budget
When it comes to good money management, setting up a budget is a great way to start, and can help you to work out exactly how much money you have coming in and going out each month. This will help you to establish how much you can afford to be spending.
Where is your Money Going?
If you find that you’re spending more money than you have coming in each month, then the next step should be to take a look at exactly where your money is being spent, and see where any potential cut backs could be made.
An easy way to do this is to begin by making a diary or spreadsheet, where you can log how much you’re spending each day and see what you are spending it on. Try doing this for at least a few weeks or so, to ensure you get a good idea of exactly where your money is going.
Make Cut Backs
Once you know where your money’s going, you can start to identify areas where you could make some cut backs. Start small by cutting back on non essential items; such as that take away morning coffee. For more money saving tips, take a look at our previous blog on money saving tips and tricks.
The next step is to start saving. This can be easier if you set yourself a goal first, just so you know exactly what you’re working towards; this can also help to increase your motivation.
Getting into the habit of saving regularly can work wonders for the health of your finances, and even if you only put a small amount aside each month, you will be surprised at how quickly this can build up.
One of the easiest ways to start saving is to set up a separate savings account and arrange for a standing order to be paid from your current account into this savings account each month. This way, you won’t have to worry about remembering to add to your savings each month, or be tempted to skip a month or two.
If you’re having trouble managing your finances and are feeling overwhelmed by your debts, then it can be a good idea to seek professional advice.
Here at Debt Advisory Services (Scotland) Limited, we have many years of experience of providing debt solutions in Scotland, and can help you get on top of your debts. For more information, please don’t hesitate to contact us today by giving us a call on 0800 011 2322 and a member of our friendly team will be happy to help you with your enquiries.