7 Tricks That Can Help You Have A Better Control Over Your Finances
Most if not all of us strive for financial freedom. A time when you won’t have to worry about how much you spend or how you spend it because you still have more than enough left. The keyword being spending.
There are moments when you want to lavish yourself with expensive outings, overpriced clothing or only buy a product for the sake of it. Those are moments when you cringe at the thought of how much you will have after the expenditure. It becomes a struggle between desire and the needful.
- Track your spending
To have control of your finances, you need to understand how you use your money. While tracking your spending in a week may not be appealing, it will open your eyes on how small expenses accumulate over time.
For budgeting purposes, it is ideal to track your expenditure for a whole month. Weekly tracking of expenses will reveal your spending patterns.
If you don’t have a budget, then, it’s time to make one. It will help you to prioritize and control your spending. You can follow the 50/30/20 Plan. In that, you spend 50% of your income on necessities.
The 30% goes to lifestyle choices, i.e., those things that are not a necessity, and finally 20% on long-term savings.
- Eliminate Wasteful Expenses
Sometimes we overlook an expense thinking that it is too little a cost but the total accrues to significant amounts at the end of the year. As you budget, are there expenses that you can live comfortably without?
It could be a subscription charge of a service that you don’t even use. Cut it from your expenses. Don’t pay if you can get a homework doer free.
- Opt for Automatic Saving
It is easy to save before you use your income than spending and preserving what is left. Most banks have automated transfers, and you can employ this by having a separate savings account. Since the transfer is automatic, you eliminate the temptation of spending the money on unnecessary or other expenses.
Have a goal of what you are saving for, to keep you motivated and focused on growing your savings, e.g., a retirement plan, or homeownership.
- Find a passive income stream
You don’t want to pass out on an opportunity to make extra money without having to toil for it. As you look for help with finance homework, online, find out ways in which you can earn money without needing extra work.
Various platforms offer such opportunities, e.g., InboxDollars, where you earn money for watching online videos by sponsored brands. You make a few amounts for each video that you watch.
- Evaluate your purchases
When it comes to buying the latest trend of clothing, we mostly think about how cool we will look. However, you need to start evaluating the purchases you make by cost per use. It isn’t a rule to apply to clothing only, even appliances, gadgets, etc.
How many times will you use it or will a thousand bucks collect dust on your shelf for many days to come? Negotiate prices for your purchases, if you can. That extra money that you get to keep will be put to better use.
- Keep an eye on your credit score
Use sites like Credit Sesame to check your scores. It may have a negative impact when you want to make a significant life move if you have a weak rating. You can also get a Secured Credit Card that keeps you from overspending.
Your credit report may look fine, but your score tells a different story. Always find time to have a look at it.
It is possible to manage your finances even though it may not be easy. Once you set your financial goals and are keen on achieving them, the above tips will keep you motivated along the way.
You can also use apps that are suited for budgeting, e.g., Mint and keep track of your cash flow.