Over the last couple of years things have been tough. Unemployment has rocketed, the housing market is still is disarray, and the stock market has fallen to pieces.
In times such as this it is important that you look after every cent you have. We are going to look at some effective ways to make your finances work for you.
Keep track of everything you spend – Keep a record of every cent that you earn or spend. To do this effectively you can use a cash notebook, an excel spreadsheet or online tools that can help you budget. Make it a habit of recording all of your transactions every day.
Develop a budget - Budgeting is the one thing that sets the wealthy apart from the rest. Its a fact that over 55% of the worlds millionaires keep a budget. Its too easy for us not to budget but if you want to start getting smart with your money then budgeting is a must.
The number 1 rule is to spend less than you earn, yet many people will never do this. Spending less than you earn is the only way you can make money and start to make your money work for you.
Get out of debt - Make it your number 1 priority to clear those credit cards and loans. You will find that clearing your debt feels fantastic but its easier said than done. Draw up a plan. You should try to pay off your high-interest debt first. If you have credit card’s and don’t want to rip them up in case of emergencies, a good tip is to take it out of your purse or wallet and keep it in a save place at home. If its not there when you’re out, you cant buy those impulse items.
Earn extra money – Nothing will speed your progress like an increase in your monthly income. There are many ways that you can make extra money each month. The most obvious way is to get a second job. Many people find that the best way to take control of their finances is to temporarily take on another job. Nobody wants to work constantly, but just keep reminding yourself that you’re doing this for a short time. Another way to earn some extra cash is to use your hobbies or interests. Are you a good writer? Write articles on a freelancing website. Can you knit? Knit custom clothes and sell them on eBay. This list is endless.
Sell things – This is very good to get some instant cash. There are many sites online that you can sell your stuff but you can also do garage sales to sell the things that you no longer need or can do without.
Many people ignore their finances but its time to acknowledge them and take control. These are a some essential tips that will get you on the road to getting out of the red and into the black.