The Baby Steps Guide To Manage Your Money
Taking the time to manage your money effectively could be worth it in the long run. It can help you keep track of your bills each year. You can use the additional savings earned to settle any debts, pay for a mortgage, allocate them to your pension or spend them on your next holiday. Read on money management tips(baby steps guide),including how to set a budget, stick to it, and how to save money.
What are the baby’s steps?
Baby Steps is your key to financial freedom, and the beauty of this is that the steps are simple. Do not worry if this sounds redundant now, in the end; you will get it.
How to set a budget
The first step in gaining command of your finances is to take stock. It will take some effort, but it is a great way to get a picture of how you spend your money.
Setting a budget means you are less likely going into debt, in an excellent position to save for a holiday, a new car or another surprise, have unexpected costs, more likely to be accepted for a loan or mortgage among others.
Alternatively, you can set a budget by getting in touch with a consultant from 24 Cash to help you set up a realizable budget.
What do you need?
To start with your budget, you need to calculate how much you spend on:
• Domestic expenses
• Family and friends (gifts)
• Leisure time (holidays, sports, restaurants).
• Cost of living
• Financial products (insurance)
• Travel (car expenses, public transport)
Pay off your debt
List all non-mortgage debts from the smallest to the largest. You will pay your debts in this order regardless of interest rates. Sounds crazy? Research supports this approach:paying from the lowest to highest debt helps generates momentum. Throw every extra penny you can find into paying the first debt on your list and do not stop. In no time, you would be surprised how far you have gone.
Life is unpredictable, so analyze your budget and your expenses at least every two months to three months.
Set Savings Goals
Some people find it extremely difficult to drive themselves to save, but it is often much easier if you set a goal. Your first step is to have emergency savings: money to look for if you have an emergency, like if you cannot work for a while.
Avoid getting into debt again
By building safety nets along the way, through the emergency fund, a fully funded emergency fund and even save for retirement and college, you can say goodbye to credit cards and loans.
Keep your priorities under control
Being debt-free is more important than fabulous birthday gifts that you will soon forget. And getting the pension so that no one else has to worry about their care is the most important thing, yes, above all, to help with university graduates for children.