Get Control Your Money or How To Keep More!

Do you find it hard to get by each month and your spending is either out of control or starting to head that way? If you’re struggling with money then don’t despair, you can get back on top. If you’d like to have more money each month or want to get control of your finances here are a few tips to help you get on top of things and start getting your spending back under control.

When it comes to money we tend to fall into one of three main categories: spend less than we earn, spend what we earn, spend more than we earn.

Create some good financial habits by taking a look at where you are now. Where would you like to be? Follow these tips to help you get there.

· Keep a money diary for a week. It can be surprising where all the ‘cash’ goes. You probably don’t really think about it on a daily basis. After all you probably just go to the bank when you need more and if you’re lucky and your account is still in credit, you get what you request. But what exactly do you spend it on? Where does it all go?

Keeping a money diary can help you get an idea of the flow of your cash out of your bank account. Whether it’s cash, cheques, cards or just those monthly bills.

Get a small notebook, carry it with you and write down every single thing you spend, as soon as you spend it, every day for the next week. Every bill, standing order, newspaper, snack, bus fare, coffee …

· Your monthly expenditure. Work out what you spend monthly on everything: rent/mortgage, utility bills, food and essentials, meals out, entertaining, clothes, holidays, presents, credit card repayments etc. etc.

Gather together all your salary slips, receipts, bank statements, credit card statements, details of loan payments, mortgage, you money diary, etc… – anything which shows money coming in and money going out. Include any direct debits or standing orders from your bank accounts.

Including the basics, compare your total outgoings with your income. Where’s the fit? Are you overspending?

· Create an Emergency Survival Fund. How much do you need to pay for the basics like mortgage, rent, insurance, bills, food and car each month? Aim to save at least three times your basic monthly outgoing that you need to survive.

Should the worst happen and you lose your job, go sick for a period of time or decide to have a change of career, you will have a financial cushion to support you. Place it somewhere with easy access but with a good rate of interest.

· Reduce Your Debts. How much is your debt actually costing you? Decide that today is the day you’re going to take responsibility and you put yourself in a much better position to do something about it. What would you rather be spending that money on?

How many debts do you have – loans, outstanding credit cards etc? What interest are you paying on them and over how long? How many payments are outstanding and how much will you end up paying in total?

If you can create some spare income each month can you put it towards ‘busting’ some of your debt.

· Save 10% of your income. Pay yourself first. As a minimum put aside at least 10% of your monthly salary. Set up an automatic payment straight out of your bank account into a savings account.

Initially, place it somewhere with easy access, preferably earning the highest rate of interest available. Never under the mattress! You never know when you might need it and you’re starting to invest in your future. The only way to get rich is to save and invest! Start thinking long-term for your savings – five years or more, not just saving for the next holiday.

· Become a Savvy Buyer. Always take a little bit of time and effort to shop around for the best deals – don’t just buy the first thing that comes along. How often do you check out the best deals available for insurance, mortgage, fuel, credit cards? Check out all the brokers and online insurance companies for the best quote.

Use cost comparison sites such as http://www.kelkoo.com or http://www.dealtime.com. You can also save money by switching to a different energy supplier via sites such as http://www.uswitch.com.

· Get Sound Financial Advice. While you can discover a certain amount from newspapers, magazines and the Internet, it’s always worth discussing your financial requirements with someone who knows what they’re talking about.

Talk to a Financial Advisor. They usually offer a variety of products from different companies. Find someone by recommendation or have an informal chat with one or two, to find someone you feel comfortable with.

Make sure you are clear about what you want from your investments. Are you looking for growth, future security or an income? Your requirements may change over time.

Use these tips and you’re sure to get better control of your money.

Understanding and Controlling Your Finances

Have you ever wondered what it would be like to be able to have complete control over your finances?

If you are like most normal people, you have a job. You go to your job every day. Every week or two weeks or month you get a pay check for some amount.

You have taxes.
The government, in an effort to make your life easier, lifts something like a third of your pay check without your having to do a thing.

You have problems.
For example, you get a speeding ticket one day, and then your insurance goes up. Or your car blows a gasket. Or you lose your job!

Then you have desires.
All humans do, some more than others. You might desire new living room furniture, a new TV or stereo, new clothes… Whatever. You may desire all of it all at once. Occasionally you cannot control yourself and one of your desires is filled.

Therefore you have debt!
Debt makes up the difference between income and expense. For most people day-to-day debt goes on a credit card, and large items like cars and houses are handled with more formal loans. Debt itself is not bad. The problem arises when debt accumulates for no apparent reason. Problems and desires would push your credit card balance upward each month because there is no other place for the money to come from.

Notice what you do not have in the above scenario?
There is no mention of a savings program. Nor a retirement plan. There is no particular hope of reaching future financial goals. No safety net! And most importantly, no peace of mind, no sense of control, no control of your life and your finances.

Let’s face it!
Investment planning is not the activity of choice for most individuals. If we had our way, the various pieces of our financial lives would magically fall into place. All of our financial needs would be met effortlessly without having to devote even a minute of time to planning!

Unfortunately, real life doesn’t work that way!
Making sense of your finances requires more time and effort than ever in today’s constantly changing economic environment. You are likely to have many different – and sometimes conflicting – financial goals. Deciding how to meet those goals requires careful planning.

So, is there a solution to this problem?
The answer is “maybe!”…
But it does require a big mental shift and if you are willing to make the mental shift the answer is yes!

It turns out there is a different way to live life. This way of life involves figuring out what you really want to do, and what is really important to you as an individual, and then working toward those goals rather than proceeding randomly.

What you gain in the process is a sense of control and satisfaction, and a sense of achievement, that is difficult to beat.