How to Be Better at Managing Your Personal Finances

WORDS: Peter Minkoff PHOTOGRAPHY Supplied

From investing to reducing spending, we are often told that some of the most important financial habits take time to build. And although these aspects do represent long-term goals, there are many strategies you could utilize right now in an effort to organize and control your finances more efficiently. To that end, here are just some of the many ways you might be able to get better at managing your personal finances:

Start tracking your spending

While this might seem like a very basic task, tracking your monthly salary and your regular spending is essential for constructing a more efficient budget. This will allow you to see where your money is going, how much you truly have left after all the expenses are paid, and whether you could redefine your goals and priorities in an effort to save some cash. As you’re tracking your expenses, categorize them in the most logical way to your lifestyle, such as food, bills, and transportation, and then calculate the total amount spent in each category. After doing this, it will become clear where you should cut some costs or direct more funds, if necessary.

Attempt to lower expenses

Once you create an effective budget, you might realize there are a number of monthly expenses and services you are currently paying for that aren’t actually necessary for your daily life. Do you pay for both cable TV and several online streaming services? Are you shopping each month and spending money on clothes and home goods you don’t truly need? Or are you eating out and ordering takeout most days of the week? Remember that smaller expenses quickly add up. Just by reviewing your habits and cutting down on non-essential expenses whenever possible, you might be able to save a significant sum each month.

Consider a personal loan

No matter how well you manage to budget and reduce your monthly costs, sometimes you might still be short on cash when it comes to larger, more important expenses. For instance, you might be facing costly car repairs, high medical or vet bills, home repairs and improvements, unexpected moving costs, or even weddings, graduations, and other celebrations. In those instances, taking out convenient personal loans could be the best solution. With the right lender, the best loan rates, as well as swift decisions and payouts, personal loans are great for providing you with money quickly when you need it the most.

Avoid spending more monthly

In case you’re the type of person to jump at the first, most attractive deal, it’s worth knowing you could be saving up to 10% on monthly expenses like electricity, insurance, and TV and internet service if you just shop around. Sometimes even simply calling your current providers and telling them you’re considering choosing a different service can get you a better deal on monthly payments. If not, using online comparison websites could also be of great help if you don’t want to do the hard work of shopping around for the lowest rates.

Have some emergency savings

Even if you don’t consider yourself a saver, you should always have enough funds stashed away in an emergency fund to cover your necessary expenses for three months or more. While you might never truly need this money, it’s always better to know you are covered in case of emergencies and unexpected circumstances. If disaster does strike, you can avoid maxing out your credit cards or borrowing money from friends and family, and ensure you maintain financial stability with the security of an emergency fund.

Budgeting isn’t always a simple task, especially if you’re dealing with a lower income than you ideally need. But just by tracking your spending, lowering expenses wherever possible, and getting some financial help when necessary, you can manage your personal finances more efficiently and be well on your way towards stability.