When you’re struggling financially, it can seem like a never-ending mire of bills, expenses and debt repayments.
In fact, after so many sleepless nights, you’re now probably convinced that it’ll never end. You’ve resigned yourself to being burdened by debt for an eternity.
But it doesn’t have to be that way.
These are the top three ways that you can alleviate the burden quickly, so you can fully concentrate on managing your money.
Pay off one debt at a time
Depending on your financial status, it’s almost always a good idea to focus on your debts before considering your savings. But most people go about this the wrong way – they try to make incremental payments on all their debts, in a bid to keep them all under control.
A far better way to stay on top of your finances is to focus on a single debt at a time. This means that you always know what you’re paying off, while making sure you’ve got enough in the bank to see you through the month.
Cancel those unnecessary subscriptions
Everything’s a service these days – whether it’s games, films or even delivery from the largest online shop whose name begins with A.
That’s great for companies, as it ensures a steady, reliable income each month. And while that makes accessing the latest movies incredibly convenient for consumers, it’s also a bit of a double-edged sword.
In fact, it’s the modern-day equivalent of that gym membership you still have: You always meant to cancel it, but it’s such a discreet transaction, you always end up forgetting.
Because we’re talking about around a tenner each month, it’s easy to forget that just two or three subscriptions soon adds up to big bucks. So, if you’re serious about saving some money, this is a beautiful place to start.
Know what you’re spending
We all know the importance of maintaining a financial budget. It shows what your incomings are and what your outgoing will be every month. But it’s not really a living document, is it? It is, instead, a forecast of what you intend to earn and spend on a monthly basis.
There are two ways of doing this. Either, you ritually fill in your budget on a regular basis (keep a strict schedule for the best results) noting your expenditure after every trip to the corner shop and every night on the town…
Okay, it’s fantastic if you can do this. It’s great advice. But it’s not always the realistic option.
The second method requires you to get an app – either issued by your bank, or from a trusted third-party – that connects to your bank account.
Now you’ll have real-time spending updates that you can check on the go. This helps highlight how much you’re spending, what you’re spending it on and where – which means you can then assess if cuts need to be made in your spending, or whether you should direct money elsewhere.