Get On Top of your Finances; Don’t Let Them Deteriorate

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A key part of expediting the wealth building process is the stop all the gaps from which your finances are leaking. This analogy is similar to filling up a bucket of water. You cannot fill it up until you seal the holes. 

Our contributor has provided some very practical, day to day tips that you can engage in and start plugging in the holes in your financial areas. Collectively, these tips contribute to saving more and thus building more wealth over time.

Hope you find these tips helpful in your pursuit of keeping more of your hard earned money and expediting your wealth building process over time.

Finances- the very word can send shivers up anyone’s spine, especially when those finances are in dire straits. Now, on this walk of life humans struggle with money, unless of course you’re Wayne Rooney who gets money thrown at him so much he becomes blinded and can’t score goals (I assume that must have been what happened at the World Cup…).

Now, you have to be sensible when it comes to money … I see you, close that Amazon tab … because if you don’t the situation will never get better. Now, I’m not a professional money advisor, however I do have some experience in this area. Let me help you out by giving you some tips on how to get on top of your finances, because if you don’t do it now they will deteriorate until there is nothing left.

Create, Understand and Stick to a Budget

Oh, that word … it has got a bad ring to it. It spells bad times ahead. However, if you try and think positive, it means budgeting now means that later you’re going to have more money; this is good! A budget helps one get on top of the finances and stay there. Once you have achieved the wanted level of financial security, budgeting can help you stay in the black.

If you need some added help, why not try an online budgeting planner. That link will take you to a rather good one, however there are more out there so see which one helps you.

Know Where Your Money is Going

Now indulge me a little, I’m going to talk about popular culture. Specifically, I’m going to talk about the American sitcom Two and a Half Men as in one scene the main character goes to his accountant who them takes a paper cup and punches a small hole in the bottom, after which he slowly pours water into the cup and it slowly drips out of the bottom.

He states that this is how most people’s finances work. He then proceeds to stab many holes into the bottom before repeating the process with the water. Instead of slowly dribbling out, it pours out. This is the shape of our main character’s finances. What can we learn from this? You’re spending too much, that’s what.

Find out where it is going. Study your statements. Chances are you have a rouge gym membership hiding somewhere or an annual cinema ticket that you haven’t used sinceMama Mia!hit the screens.

If this doesn’t work, keep a ‘spend diary’, then you can see, each week, where your money is going. You can then consider where you can cut back. 

Make Paying Off the Debts a Priority

I would personally always stay away from credit cards as they are evil, but in the event you have them and you have loans, pay these back as soon as possible, especially the ones with the highest interest rates. When you have debts make sure they go first and then worry about everything else.

Buy Adequate Insurance – But Ensure to Shop Around for the Best Rate

Insurance confuses a lot of people and they usually settle for the first company they talk to, which often results in paying more than you need to. Review all of your various insurers and identify where you can make a change. Perhaps consolidate many under one company as this way you can make a saving or receive a discount.

Say you have a classic car or motorcycle, make sure you go to a specific insurer instead of an umbrella company that caters to many forms. If you conduct some thorough research, you can find a great motorcycle insurance company or a classic car insurer that will suit you. They will usually offer better rates and a more appropriate policy for your specialist vehicle.

Look at you finances. Use your eyes, you will soon see where you can cut back and make changes and you’ll be thankful when you do.