Managing your finances is no easy feat, especially when you’re feeling the pinch. Add a personal loan to the mix and you can start to feel overwhelmed in no time. If you’re trying to get on top of everything, get rid of debts and put yourself into a better position financially, there are a whole lot of little things you can do to help you get there.
If you’re not sure where to start when it comes to getting your cash flow in order, we have a few tips for keeping track of your finances and loans the smart way.
Sort out the basics
If you’ve taken out a personal loan, one key thing to look at is how much you still owe, how quickly you can repay it, and whether there are flexible options regarding early repayments. There are plenty of calculators online that can help you figure out where you stand. Another option if you have multiple loans with multiple lenders is debt consolidation, which will mean you only have one loan and can pay off all the remaining balances you owe elsewhere. Also remember to check the interest rate, fees and charges so you know exactly what you’re in for.
Identify what you can cut down on
If you’re reviewing your personal loan and finances, it’s a good time to consider what your regular outgoings are to see where you can cut down and readjust your spending habits. This will involve taking a good, honest look at any non-essential spending and deciding what you can go without. It can be surprisingly easy to find a few small expenses that can be cut down significantly. Small changes like bringing lunch from home instead of buying it everyday, taking public transport instead of driving or getting a lift service, and getting rid of subscription services you rarely use will all add up.
Write up a budget…and stick to it
Putting together a budget is a basic but essential task when you’re working to get on top of your finances. Make sure to list all the things you absolutely need to pay for with a fixed cost – like rent, phone bill, and utilities, then look at what you have left when you compare those costs with your income. You’ll have a clearer picture of what you have leftover each week for things like groceries, transport, and the fun but non-essential extras. It may sound a little boring, but spending just a few hours going through your finances might just surprise you, and will probably give you a whole new perspective on the way you manage your money.
Pay with cash
Also, a great way to stick to your budget, paying with cash means seeing exactly where each of your dollars go. This may not sound significant, but cash is a lot harder to part with than just swiping your debit or credit card. Taking out the amount of money you want to allocate for groceries is a good way to start. You can go even further than this and take out a weekly cash allowance for any extras you’d normally spend on – like coffees or movie tickets. This can make budgeting easier when you can see exactly how much you have left to use for the week. Still got some left over at the start of a new week? You’re already saving a little extra!
Keep your receipts
Paying with cash will force you to see how much money you are spending, but keeping your receipts means everything is on record. This feel a little bit old school at first, but following your own paper trail can eventually lead to some well-needed budget reconsiderations. Having a record to look back on makes it a lot easier to keep track of what’s going out and where you can trim down when you’re reviewing your budget.
Make a shopping list
It’s all too easy to wind up at the checkout with far more than you’ve bargained for…literally. To simplify your grocery shopping experience, make a list of everything you need before leaving the house, and be strict with both your kids and yourself about sticking to it. Check online or in the catalogues to see when essential basics are on special, as stocking up in advance when you can also helps to save you those few extra dollars in the longer term. For those extra treats, adding a little extra into the budget every other week will mean you or the kids can still get something extra – all while staying on budget.
Get in touch qith Rapid Loans for any loan needs
Managing your finances and personal loans is easier when you have the support of your lender – Rapid Loans charges no early payout fees so if you’d like to pay off your loan ahead of schedule or increase your repayments, you can do so without penalty. By making a few small, consistent changes to your lifestyle and keeping track of your loans, you can start to put some distance between yourself and any debts or bad credit ratings. Thinking about a debt consolidation to get on top of it all? If you’re ready to take the first steps and want to learn how Rapid Loans can help, learn how everything works and apply online or contact us for more information.
Please note: This is purely an opinion piece and should not be used as a sole source of guidance.This is general advice only, and has not taken into account your financial objectives, needs or requirements. You should seek your own advice to determine if this product is right for you.