Saving money and improving your financial health is tough, however you can make it easier with a bit of focus and some discipline. Here are some great tips to improve your financial health.
1. Monitor Your Daily Spending
Do you have an idea of how much you spend on food, gas, or gifts every month? It is only by creating a budget that you can be sure of where and how you spend your hard-earned money. The first step to doing this would be to track your daily spending and then create a budget. You can either choose to do it manually or use free tools such as TrackMySPEND app for easy and painless monitoring.
2. Pay Yourself First
As unrealistic as it may sound, paying yourself first, and setting aside an amount to save, before spending on anything else can help you realize financial freedom. According to research, individuals who choose to pay their bills first, followed by spending and then saving whatever is left, hardly ever achieve financial security. Setting aside a certain amount for yourself and savings will, however, help you realize your financial goals much faster.
3. Create An Emergency Fund
An emergency fund is vital even for a spendthrift person. This account will help you get out of a sticky situation, or an emergency when all else fails. That said, it would be advisable to set up an emergency fund and ensure it can cover you for at least 3 months. Until you have an emergency fund set up take out loans for poor credit if you have financial emergencies.
4. Consider Automating Regular Bills
Automating your bill payments is one of the best ways to avoid late or forgotten payments. Whether servicing a loan or paying for your mortgage, automating debiting will save you the struggle and possible late payment fees. There are plenty of tools online that can help you achieve just that.
5. Set a Goal
According to Livemakemoney.com, one of the best ways to sort our finances is to set a goal. Yes, it may sound simple, however just setting a savings goal makes it a lot easier to put some cash away for a rainy day.
6. Close up all unnecessary credit Accounts
Do you have more than 4 credit cards? While having such may seem convenient, they only increase your risk of overspending and getting too much into debt. Consider ditching all the unnecessary lines of credit to remain with just one or two. Doing so will also force you to be a disciplined spender.
7. Look For Someone To Cheer You Up
Are the impulse buys derailing you from your plans? Having someone to help you stay focused on the goal might help. The Unsplurge app might be just want you need to keep the fire burning. The app logs your progress, which can be shared with other users with a common goal.
8. Always Window-shop Before Settling On An Item Or Vendor
There is a good chance you are paying 5-10% more on your internet service, electricity, car insurance, and even groceries. That said, shopping around for an item and comparing prices between different vendors/suppliers before making an actual purchase or order could save you lots of money in laziness tax. A simple step such as comparing how much you are paying for the internet and what the rival companies are charging for the same will make you want to immediately end the contract Simply let the provider know of your intentions to move to a different provider and why. Some of them will offer a better deal to keep you as a customer.