If you’re a little disorganized when it comes to managing your finances and your monthly budget, simply continue reading to discover a handy guide to organizing your finances.
How to organize your finances:
List all of your debt out on a piece of paper:
While you may want to temporarily forget about your debts in order to take control of your finances, it’s crucial to account for all of your debt. Make sure to list the interest rate for each loan or credit card, so that you’ll be able to start paying off your loans and credit cards which have the highest interest rates. As the faster you pay these debts off, the less interest you’ll pay in the long term.
Consider consolidating all of your loans and credit card debt into a single loan:
By consolidating all of your loans and credit card debt into a single loan, you’ll be able to pay a lower amount of interest. As an added bonus, you should find it a lot easier to keep track of your debt if you choose to consolidate all your loans into a single loan. Lastly, you may even find that you’re more motivated to pay off your loan, if you only have a single loan to pay off. As paying off one loan, no matter how big may seem more manageable than paying off two credit cards and three loans.
Use a budgeting app in order to manage all of your receipts:
If you’re terrible at safely storing printed receipts, you can keep track of your everyday spending by taking photos of all of your printed receipts and uploading them to a modern budgeting app. That will automatically add up all of your in store purchases. Most budgeting apps will also allow you to add your online spending to your monthly expenditure. So that you’ll be able to keep track of your online purchases and bills and in store purchases in one place.
Set up an automatic payment from your everyday account to your long term savings:
In order to force yourself to save a predetermined percentage of your salary or wages, it’s a smart idea to use your online banking account in order to set up a monthly automatic payment from your everyday account to your long term savings account. As an example, you may decide to save 20% of your disposable income each month.
Invest a small portion of your monthly income:
If you opt to save 20% of your monthly disposable income, you may also be interested in investing 10-20% of your monthly income. In order to start investing for your financial future and your retirement. If your monthly budget is tight you may want to start off with investing 10% of your monthly income, while if you have plenty of funds left for luxury items each month, it may be in your best interest to invest 20% of your monthly income.
Consider talking to a financial advisor:
If you speak with a financial advisor, they should be able to give you valuable advice on how you can tweak your monthly budget, in order to increase your passive income.
Hopefully you’ll find managing your finances a whole lot easier after reading all of the finance related tips which are listed above. As taking control of your finances doesn’t have to be a stressful or arduous task.