Today there are more ways than ever before to save, spend and look after your money. Digital technology has opened the doors to a catalogue of apps, platforms and financial products from which to choose. Here we investigate and offer 5 top tips on how to have better control over your finances.
- Setting Goals
Whether you use technology or a more conventional method, setting yourself financial goals is a great way to gain better control. The classic example is, of course, a saving plan. Setting goals for how much money you intend to save each month may be the only incentive you need to accrue a pot of capital. Many people also choose to think about what they could do with the money once they have achieved the target – a little extra motivation.
- Tracking Your Spending
Online banking products, such as those offered by Think Money, allow you to track your spending with ease. There is lots of research that suggests that doing so is an effective way to help you manage your money more effectively and to avoid overspending.
Logging into your account, on a regular basis, to track your spending means that there is no need to second guess how much disposable income you have at any given time and also means you have a keen eye on other factors like bills and potentially fraudulent behaviour.
- Reviewing Contracts and Agreements
Regularly checking your direct debits and standing orders is another good idea and will help you gain better control over your finances. Paying for services that are no longer being used and searching for better deals or offers constitute just two of the ways that this can help.
- Consolidating Your Debt
If you have several stands of debt, it may be wise to look for a way of consolidating those debts so that you are paying a single monthly fee. There are several ways to do this, but the bottom line is that you need to find a lender who offers a good interest rate and then pay off the debt before even entertaining the thought of more borrowing.
- Additional Revenue Streams
Increasing the amount of money you are earning can also help you gain control of your finances, as it can help you pay off debt faster and stop you borrowing more. A pay rise, second job or passive income will all help make the overall picture look a little rosier.
Gaining control of your finances simply involves having a better overview of your situation and then taking a proactive approach to solving any problems that you may find.