Organizing your personal finances avoids stress, saves you time and increases your disposable income.
Here we are going to tell you some tips that could improve your performance in exchange for making a small investment of effort.
1. Pay Yourself First
Most people pay their bills first, then spend and save the rest. Many of these people do not achieve significant financial security. Many experts have discovered that the “pay yourself first” method is the path to wealth. When the money arrives you should set aside a certain amount for personal expenses, ideally first to save. Only then do you start taking care of other expenses.
2. Track Your Expenses
Do you know how much you spent on gasoline last month? or meals outside? Keep in mind that what is measured is managed, so the first step to gaining control of your finances is to determine where your money goes.
3. Have Some SOS Savings
Even if you are not a big saver, it is essential that you have at least money saved to sustain you for 3 months.
You may never use that money, however, if a calamity should strike, having that money available gives you invaluable peace of mind. Plus if something goes wrong, you don’t have to resort to credit cards or apply for emergency loans with sky-high interest rates.
4. Automate Regular Invoices
You should arrange for recurring expenses to be automatically debited, such as car loan repayments or payment of legal entity fees. Taking this action saves you the time you spend transferring that money yourself and will ensure that you are never hit with late payment fees.
5. Avoid The Laziness Tax
You could be paying less for things like car insurance, internet service and electricity if you shop around for cheaper prices. Simply contacting an existing supplier and telling them you are considering going elsewhere will usually get them to offer you a better deal. This way you can accumulate big savings if you are part of the minority looking to negotiate hard.
6. Tear Down That House Of Cards
If you have a store card, a couple of credit cards, and a backup credit card that you use when you travel. This can cost you a lot of fees and charges and also means easy access to a lot of credit that you may not need.
That means increased debt, especially for those people who lack self-discipline. Conduct an analysis and rationalize your supply of credit cards to only those you need.
7. Order Your Super
Many people have their super spread across several accounts. If you have been changing jobs several times
it is likely that because you are too busy managing your new position, you make sure that your money from
your old super account is transferred to the new one. There may be little or no advantage to having a super
diversified account across many accounts. This means you could be unnecessarily paying multiple
management fees instead of just one. Taking immediate action saves you money that would otherwise have
been spent on fees.
