4 Ways To Gain Control Of Your Finances

Written by on April 27, 2013 in Money - No comments | Print this page

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personal financeOverspending is all too commonplace in today’s society. The reality is that there are so many things to purchase that it is easy to get carried away.

Unfortunately if this activity is not kept in check there can be severe consequences. Getting yourself into debt can often be very difficult to get back out of.

If you feel like some of the above applies to your lifestyle then this blog post is for you. Here we will take a closer look at four ways to gain back control of your finances.

Track Your Spending

Without doubt, one of the best places to start is to understand your own spending habits. Failing to track your spending will make it much more difficult to gain control.

Keeping a list of what you spend might not be to everyone’s liking; however, it is certainly good practice when trying to curb bad spending habits. Over time you will start to see a pattern of spending.

There will be a very good chance that some of the items that you have purchased might not have actually been altogether necessary.

Avoiding these unnecessary purchases is a sure fire way of getting a firmer grip on personal finances.

Review Existing Commitments

Being able to track and reign in spending is only part of how to take control of your finances. Other aspects that should be dealt with include taking a look at existing commitments. These are likely to be things like overdrafts, fixed loans and mortgages.

Additionally whilst on the subject of performing a review it is probably a good idea to look at retirement costs and pensions reviews are a great way of achieving this. This will allow you to understand and plan for you future to ensure that you will be able to retire comfortably.

Once you are armed with this information you will then be in a position to see where potential savings can be made. It might be possible to merge a couple of loans into one in the shape of a consolidation arrangement as this will very often help to reduce monthly out-goings.

Any spare cash that is generated can either be used to improve cash flow or can alternatively be paid in the form of additional pension contributions to help secure your future.

Cut Up Some Cards

If when reviewing your finances you find that you have three credit cards or more then you should cut at least one of them up. This course of action will prevent you from continuing to load up these forms of credit.

Of course, cutting up a card or two is only part of the answer here. This will obviously prevent you from using the card in a retail environment; however, it won’t necessarily stop you from using it online. A degree of will power is required here. Failing that then you could instruct the card company not to authorise any future purchases on that particular piece of plastic.

Round Up Repayments

One great way of reducing debt levels and therefore helping to regain control of your finances is to make additional payments. These extra payments can be relatively small, so as not to make too much of a dent in cash flow levels.

An example of the above might be if you have a loan for say £265 per month, then by paying £300 you will be able to reduce the overall term of the loan. This practice can work really well to helping to regain an element of control over your personal finances.

Sometimes you might receive a bonus or higher commission than normal. If this is the case then some of this can be diverted to paying of these bills; this is another great way of reducing debt levels and controlling your money.

Kay Brown is a writer who is always on the lookout for new and interesting ways that you can regain control of your finances. She believes that the only way to control your finances is to understand them better by looking at pension reviews and existing borrowing levels. 

Image courtesy of emptyglass / FreeDigitalPhotos.net

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