It’s a good idea to have a thorough examination of our finances every once in awhile, as this will determine if we need to make any changes to our spending habits.
For example, if you have been wondering where all of your paycheck is going each month even when you don’t have that many outgoings then it might be a good idea to find out what you’re actually spending money on!
A good place to start is to collect receipts of all the things that your household is spending money on each week – from groceries, electricity bills, loan payments and even your daily cup of coffee.
It can all add up easily and quickly, so it’s good to include everything that you can think of.
Doing this will allow you to gain a proper insight on what’s best for your financial situation, and how to achieve it.
From here, it might be a good idea for you to create a budget to monitor exactly what you’re spending, and to determine whether you have any funds left over to contribute to savings. Doing this will also allow you to set a fixed amount for spending on entertainment, shopping and other luxuries.
You don’t have to live the life of a frugal hermit in order to have healthy finances, but just make sure that you have enough left over from each paycheck to save for a rainy day.
It might be a good idea to talk to other members in your household too so that you can encourage them to limit their spending.
We can often be easily lured into obtaining debt even when we don’t necessarily need it. Credit cards, overdrafts and personal loans are all too easy to secure if you’re employed, and offer an attractive incentive to buy now and pay later.
However, this is a bad trap to fall into as the interest that accumulates over time can result in you spending way more than you had originally planned.
This can also lead to you paying off your debt over a longer period than you anticipated, as interest keeps piling on top of itself.
These types of loans and debt can also have a significant impact on your credit rating – which is not the best news if you’re looking to purchase a home.
we can help
If you are wondering where to get financial advice, we can help. Why not get in touch by calling 1800 626 881 or by using the ‘contact us’ tool on our website.