Highly organized on the agenda for many people. But what does it mean to be organized? Does that mean you have never been late anyway? Or are you always late to pay your bill and want to finish it? One important area in many lives people get their finances is organized. This includes ensuring that you are not too excessive and everything is paid on time. You might also want to set aside money for an emergency.
The first step to sort out your finances is to check how much money comes every month versus what comes out. As long as you produce more money than you spend, you are basically fine and maybe just need a little. If your expenses exceed your income, you need to see many more detailed things.
So let’s look at the two scenarios.
1. Larger income from expenses
You spend wisely, me. You don’t live outside your means. Every month you have at least a little left in your account. The only problem you have is paying everything on time, you often get reminders and have to pay a delay.
Top tips
* Get as many as possible to paid automatically with a standing or direct debit order. This means that you don’t have to track when the bill is due, the bank deals with them automatically. All you have to do is check every month, that the correct amount is deducted (especially in direct debit).
* Enter a reminder in your diary that you need to pay invoices, ideally a few days before the invoice maturity date. Then write check / make the bank transfer that day. Make sure you always have an envelope and cast when you pay by check.
2. Your expenses are greater than your income
You need to do one of two things, either reducing your expenses (usually an easier way) or you need to increase income by taking a second job, improve your hours or take a better paid job.
To reduce your income, make a list of all your expenses. Use your bank report from the last 2 or 3 months and make an average of how much you spend every month. This will give you an idea where you can reduce.
Top tips to reduce your expenses
* Give yourself a budget for how much you are allowed to spend food, clothes, out, etc. Take this amount in cash and don’t use any debit card or credit. After cash is lost, it’s gone. This will teach you to hold on to your budget in a short time.
* See if you can reduce your fixed costs such as mortgages, utilities, telephones, etc. by exploring the market for better offers. Chances are, you can save hundreds every year by replacing suppliers.
If you are in deep financial problems, it might be wise to consult with a financial expert to help you return to its path. Financial experts will be able to work with you and give you a strategy that is tailored to your situation and will help get you back quickly.
