It literally happens every year. You look at your bank account around the end of the year and you see one bill after another. All just sitting there piling up on each other. Sad part is it’s been going on for a while and you just don’t know what to do.
However, this can be changed. What you need to do is learn better money management skills. It just makes life a lot better. Plus money management affects everything. Your credit score, the amount of debt you may or may not endu up accumulating, investing and more. If you are making more than enough cash (Great job, etc), but you are still grappling with money issues, then here are some ideas to change your financial patterns for good.
If you can, it’s better to hire someone to manage your money but don’t be a poor money manager yourself. It’s better to hire or learn from professionals so you can have more control over your own life. Especially financially.Anyways, here are some tips to help you overcome these issues and finally help you become a great money manager.
Do Not Miss Your Bill Payments
Do you know that you can potentially get heavily penalized just for skipping your regular bill payments? Your credit score can really take a beating if it gets reported so make sure you pay your bills on time. This is money management 101.
Paying your bills late will cause your credit score to tank. Since credit rating companies, such as Credit Karma and Equifax, judge you on how well you are as a borrower. It is always best to pay your bills on time. So no matter what the bills is about, water, gas, telecommunications, internet, or whatever, just pay it right away.
These days, if you get your bills late, the companies won’t remind you about them. They will simply send your information to the collectors, ruining your credit and now you are stuck for at least 6 to 12 months with bad credit. If you are trying to buy a house or something with good credit, then forget about it.
Start Saving Money Right Away
You don’t have to save hundreds or thousands, even though you’re spending as little as $10 CAD is still a pretty good practice. It wouldn’t be a bad thing to have multiple accounts when it comes to saving money. Get one for your emergency fund, one for your savings, one for your kids, and a couple for yourself.
Also use different Canadian banks like TD Bank, CIBC, HSBC, Royal Bank of Canada and more and have an account on each. So you can access your cash faster while having multiple places to save it as well.
Maintain Your Budget
It sounds repetitive, but it’s essential. Keeping track of your spending is crucial to monitor how much you earn and how much you invest. Although you can assume that your obligations are just a small fraction of your paycheck (e.g. rent, buy, bills), you’ll be shocked by just how easy it is to lose track of your expenses.
Try To Not Borrow Money If Possible
We all require some assistance with funding once in a while. Many of us will succumb to take up loans to pay for our cars, homes, college, and businesses the list goes on. But you may want to consider twice if you took out a personal loan to pay for items like a holiday, new furniture, a wedding, or even gambling.
Loans come at a monthly interest rate, which means that more than you previously lent would potentially have to be paid. It’s best to save up for these planned expenses and use loans only when you can’t afford to fund anything significant and necessary.
Pay The Lowest When Possible
You will keep most of your money through comparison shopping. Look for discounts, coupons, and cheaper options and this way, you’ll end up saving a lot. This really adds up every week and you’ll be astonished on how good you are doing with managing your money finally.
Pay The Minimum Balance On Your Credit Card
When you have a credit card, you can still pay the entire sum of your loan. Paying only the minimum will help you escape the late fee, but when you start paying interest, it will bite you right back. Credit card interest rates are notoriously high, and if you do not take any real steps, it will take you a very little time to double your debt or even triple it. So always pay the minimum balance on your credit card.
Keep an Eye on You Credit Score
Best indicators of how you are doing money wise is by regularly paying your bills and keeping an eye on your credit score. This is one of the best ways to do it. Weekly checks on your credit score will keep you focused and once you see it move up, the progress will encourage you to continue doing what you are doing.
Don’t Splurge. Not Yet.
They say that money doesn’t buy happiness for you, but we all know that it does somehow. Those new Air Jordan’s cost a bit of money, but if you’ve been dreaming of seeing them for the longest time, you know that you’re always going to be comfortable with them on your feet. Although it’s still a good thing to live your best life, prioritizing what you need instead of what you want is also crucial.
Talk To Professional Financial Guru
Not all is lost if you’re guilty of not following these money management tips. Let’s face it, it’s not easy. Especially if you didn’t learn this stuff in your childhood. To help you set a simple budget, strive to find a trustworthy financial planner, such as an accountant, so you can save, spend, and save more efficiently. In any event, if you think you’re a poor money manager, start taking all the required steps as soon as possible to get hold of your finances!
Add Comment