It can sometimes seem like we are always struggling financially and that it is something that we will always have to cope with. However, this is something which we can avoid if we get into good financial habits. Therefore it is worth learning about what these are as soon as possible and using a few simple principles in order to make sure that we do manage out money well and therefore do not need to struggle.
Learn how to budget
It is really important to learn how to budget. It is important to firstly make sure that you know what budgeting is and then how to do it. Budgeting is where you make sure that what you are spending does not go above what you earn. Therefore you set a limit on how much you can spend called a budget. In order to do this you need to be aware of how much money you have coming in each month and how much money you have to spend on necessities such as contracts, rent or mortgage, loan repayments, insurance, food, travel and other things which have to be paid. Once you have calculated the difference between these, you will have a figure of what you have left to spend each month. You may decide that you want to save some of this and so set a budget a lot lower than this amount for how much you have to spend on luxury items. It is then up to you to find a way to record your spending so that you are sure that you have stuck to your budget.
Do not spend more than necessary
It is so important to make sure that you do not waste money. It can be so easy to spend more then necessary on things. For example, many of us will be spending more on insurance ad utilities than we need to. This is because there are many companies offering these and if we renew each year or just keep paying monthly to the same company, it is likely that we are paying more than necessary. Switching to a new company is fairly straight forward and can save us hundreds of pounds a month. If we compare prices on everything that we buy then we can end up saving a significant amount of money. This saving will make it easier for us to manage our money.
Earn the most that you can
It is well worth making sure that you are always earning as much as you can. For example, check the system in your current workplace for getting a pay rise and see whether you are able to apply for one. Make sure that you do not do anything that will mean that you miss out on a pay rise. It ca be worth seeing whether you are being underpaid for what you are doing and if you think you are, then asking for a rise or considering looking for a job elsewhere where you can get more money. You may also be able to get some extra hours or overtime which could help you to earn more.
Look for opportunities to earn and save
It is worth making sure that you always look for opportunities to earn extra money and to spend less money. This can be great fun once you get used to it. You can find that you will get great pleasure when you can earn a bit extra or you can save some money as it means that you can boost your savings or treat yourself to something. It can become an automatic habit after a while.
If you learn and stick to these techniques then you are far less likely to find your finances to be a struggle. You will budget well and be able to save money so that you have some to fall back on. You can also look for ways to earn more and spend less so that you never feel like you are enslaved to money but that you can have fun with it. It can feel great to know that you are no longer worrying about money all of the time and wondering how you will afford your bills. You can almost be smug in the knowledge that you have enough money to manage all of the time and to cover your bills and not only have enough to save a bit but also have some savings behind you to make you feel comfortable. The more you can build up your savings and the better you get at budgeting and looking o opportunities to earn more and spend less the more relaxed you will feel about money. You can get away from that feeling of being enslaved to money and that you are always struggling to feeling that you are in control of it.
Finances can be a worry for many people and it can for some, be a constant worry throughout their lives. The same was true for myself for a very long time but my thinking changed when I did a course which included an aspect of positive thinking. It was explained that however much money we all have, we still have thigs to pay out and as income increases so do expenses and therefore having more money does not solve your financial problems. It took a long while and a lot of learning about money to finally realise why this was correct.
Making your finances balance
It is key to make sure that your finances always balance. This means that you always spend less or the same as you earn. This is not always easy, but if you are aware of how much you earn and how much your bills are, then you will be well o the way to doing well with this. You will need to think about how much you always earn and whether you are likely to have any occasions when your earning might go down that you might need to prepare for. You also need to be aware of what you normally spend and when you might find a time when you might need to spend more money. Then you are in a position to be in control of your finances.
It can be important to keep checking the balance on your current account so that you are aware of how much money you have available to spend. It can be easier to set up your direct debits so that all of your bills are paid just after you get paid and then you will know how much money you have left to last you until you next get paid.
Getting into good spending habits
It is wise to make sure that you spend wisely all of the time. This means that you think hard about everything that you buy and make sure that it is something that you really need or want. You should also think about whether you can find any items that you are going to buy cheaper. You should be comparing prices all of the time and think about which items you think will be providing you with the best value for money. This can seem rather tiresome, but you will get used to it and once it is a habit it will be very easy to do. This does not mean that you have to suffer and go without things, but if you can pay less for the things that you do buy and only buy things that you really enjoy then you will save money. You will also appreciate the things that you buy more because you will buy things less often and therefore will find having new things more of a novelty. If you wait to buy something, perhaps because you need to save up or think about whether you really want it, you can actually find that you really enjoy it a lot more because you have had to wait.
Keeping some savings behind you
It is a really good idea to have some savings all of the time. If you have some money put aside then you will have some if you need it in an emergency. This means that if you get an unexpected bill, need to replace something that is broken or find that your income is reduced for some reason, you will have some money to help you. The more money you have managed to build up the more confident you can feel in your ability to cope if you are in a situation where money is a problem for you. If you can manage to put some money into a savings account every month, then this will build up for you. The best thing to do is to put some in just after you get paid. This will then help you to be able to budget for the rest of the month with the money that you have left. If you wait until the end of the month, which many people do, you could find that there is nothing left to save. However, if you do have money left at the end of the month, then put this into the savings account as well.
Staying away from bad debt
It is very wise to learn to stay away from bad debt. This is when you borrow money for things which are not necessary or when you borrow money without finding the cheapest or best type of loan for your needs. This can lead to more debt than necessary and can lead to all sorts of problems with regards to your finances as well as your stress levels. If you do not make sure that you can manage the repayments then you could really struggle with being able to afford everything that you need as well as causing yourself a lot of worry.