In an economy, which is struggling, it is easy to get in to debt or into a position where you are struggling for money. Here are some tips to help you keep track of spending and be sensible with money so you can earn a respectable credit score, maintain some emergency money for that ‘just in case’ incident as well as enjoying your hard earned cash.
How to Manage Money Effectively by spending less with good reasons
These are often overlooked when things monetarily are as tight for the average person as they are, but when your car breaks down, or house insurance runs out you have the cash there to rescue a bad situation worse and don’t have to go cap in hand to family or friends.
Some expert’s estimate saving between three and six months living costs in-case you have a sudden loss of income. Opening a savings account at the bank you already use, that doesn’t have a debit card option is proven to be the most sensible and secure way to store your cash and won’t tempt you to use it.
However boring it might sound budgeting is a great way to monitor your incoming, spending and outgoings. Use one of the online tools or if you’re particularly ‘techy’ create a spreadsheet that will calculate your spending and what you can save for your emergency fund (see above).
Utilize your mobile technology to assist with this monitoring, which will also mean when you’re out and about shopping you can add things as you go. iReconcile is a daily budgeting app that allows you to categorize your spending, including any finance plan payments or credit card payments. There’s no excuse to not know where your major spends lie with clever apps like these. Better still, you can check these best finance apps to help you manage your finances.
Although banking consultants will advise you to steer clear of credit cards,they do, when used responsibly help you achieve a higher credit score, which enables you to apply for a better mortgage and finance on high value items if and when you want them. To use your credit cards responsibly pay them off as soon as you can and never miss the minimum payments, as you will most probably receive a hefty fine.
When banking online there are several things not to do to ensure hackers don’t steal your money or identity. Ensure your passwords contain lower and upper case as well as numbers to make them less predictable and make sure you change your pin on your cards regularly.
When using a public computer or tablet running from Wi-Fi, for example, never stay logged into your accounts or leave your device logged on. When paying with your credit or debit card in your favourite stores ensure they use trustworthy sources such as Capital Processing in Phoenix, which are high speed via an encrypted Internet connection enabling you to spend securely.