Admittedly, spending money is so easy compared to earning it. Knowledge on how to handle money and financial problems is important. You need to know the right budgeting tools to be able to find financial peace. You have to know how to take charge and make the most out of your monthly earnings. If you are having money problems, then our total money makeover tips are here to help:
Tip # 1: Educate Yourself
The very first step in your total money makeover is to know the basics of handling money. There are many books on how to pay off debt and how to handle your hard earned cash. There are also seminars that can teach you the right budgeting tools on how to stretch your money and start saving for rainy days.
Tips # 2: Make a List of Expenses
Find out where all your money is going. List down all your expenses and identify the needs from the wants. This will give you a clear picture whether or not your money is enough for all your needs or if most of it goes to buying unnecessary things.
Tip # 3: Develop a Monthly Budget
Your budget for the month should include paying for your bills, loans and food. Allotting a certain amount for these ensures that you are up to date with your monthly expenses. You need to budget the in and out of your finances so that you will not go overdraft.
Tip # 4: Cut Down On Expenses
Another way to improve your money situation is to cut down on unnecessary expenses. You can also switch to some cheaper brands and take advantage of sales and discounts whenever you shop for your needs.
Tip # 5: Paying Off Debts
The most important total money makeover step is to work on freeing yourself from the bondage of your debts. Organize your debts from the lowest balance to the highest balance. Focus on paying off the lowest balance first, at the same time, pay the minimum on the other bills each month. Once you have paid off one bill, follow the same method for the second lowest bill. Continue this process until all your debts are paid off.
You can also make use of the 0% APR on balance transfer of your credit cards. What you will do is to consolidate all of your existing credit card bills into one. There are credit cards that offer 0% monthly rate for 18 months. Without paying for the high interest rates that come with credit card, you can easily pay off the principal amount within that period.
Tip # 6: Earn Extra Money
Use your talents and skills to earn extra income. You can do freelance work online. You can also earn through your hobbies. Offer your services to friends and neighbors without the need to spend extra for a space. You can do your business at home.
Tip # 7: Avail of Discounts and Rewards
Credit cards often give rewards and discounts on your purchases. While shopping, check out the paper to find great deals and bargains. Even the smallest amount you save can be very helpful.
Tip # 8: Automate Your Finances
Automating your finances makes it easy for you to pay your bills on time preventing you to pay extra charges on late payments. This is a vital step for a total money makeover in your finances.
Tip # 9: Start an Emergency Fund
Set aside a part of your monthly earnings and start an emergency fund. This gives you some financial peace of mind knowing you have money to spare for whatever immediate need you may have.
Tip #10: Save up for Your Retirement
Another wise investment is to save up for your retirement. There are many insurance agencies that offer retirement benefit plans. Get one that fits your budget while you are young, so you can be assured of a good life when retirement time comes.
Working towards paying off your debt will eventually top your credit score which is essential if you want a total overhaul of your finances. Many people have found wealth and success using these 10 steps towards total money makeover. It’s about time you do the same and find your financial success too!
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