Still having trouble managing your money in 2019? You’re not alone. More people are having money issues than ever thanks to stagnating wage growth and an increase in the cost of living. If you’re having problems managing your finances, all is not lost. You can do something about it. In this article, we’re going to look at how.
While money issues can be a problem for many, if you make a few wise choices in your life you’d be surprised how straightforward many situations can be to fix. Some of these money-management tips might make no noticeable difference to your lifestyle.
While those with more serious issues might have to make some sacrifices, you should be able to get on top of things soon enough.
In this article, we’re going to look at nine different money management tips so you can start getting on top of your finances in 2019.
Tired of never having any savings and living paycheck to paycheck? Some of these tips are straightforward, while others might take a bit more planning. While there isn’t a quick fix for everyone, do what’s right for you and start noticing your quality of life improve.
So, what are the tips?
1. Consolidate Your Debt
Have you got so many different debts you’re having a hard time knowing where to start? That’s a problem for many these days. The problem is, people have so many different financial products and personal loans you probably don’t really know what you owe at any one point.
Or how much you need to pay back each month. You need to work out this sort of info so you know exactly where you stand and before you start making other decisions about your finances (or seeing if you can afford things).
If you’ve got credit card debts, student loans and many other financial products, knowing exactly what’s coming in and going out each month can be difficult. That’s why you could try consolidating your debt with debt service and combining it all into one monthly sum.
Then you’ll know exactly how much money you need each month to service the debt, and will be able to make more sensible decisions about your finances. Consolidating your debt can be one easy way to start managing your finances more sensibly.
2. Improve Your Credit Score
If you’re having a hard time getting the loans you want with better terms, it might be because you’ve got a poor credit rating. Your credit score is the first (and sometimes only) thing lenders look at when deciding if you’re worth lending to or not.
If you have a limited or poor history of making payments and having good money management skills, that might be why you’re struggling financially.
Those with poorer credit scores can often only be serviced by specialist lenders and with loans that have much higher interest rates. This can make financial troubles spiral as you can only get expensive money and your situation continues to deteriorate (and your credit score gets even worse).
If you want to get better interest rates you need to start improving your credit score. Thankfully, there are a number of things you can do. Start paying back more than the minimum, or completely pay off a few of your loans if you can afford to do so. Don’t apply for too many loans if you keep getting rejected and give your score some time to recover.
Multiple quick rejections can make things worse.
Try building a sensible and strong financial record and things could improve.
3. Renegotiate Terms with Lenders
If you’ve got a problem with a loan and you’re struggling to pay it off, you might want to have a chat with the bank or lender. You’d be surprised how understanding some can be, and if you don’t ask – you won’t get.
Lenders can often be willing to renegotiate terms as they don’t want you to default and pay back nothing, so you could extend the length of your loan in exchange for lower monthly repayments if you’re struggling. Asking lenders to renegotiate can be embarrassing, but it could be well worth it.
4. Payback as Much as You Can
If you find yourself with a bit more money one month, you might want to consider paying back more than the minimum on your loans, and as much as possible.
Clearing your debt quickly can free up your finances and give you more room to move.
5. Spend Less
One way to fix your finances is to spend less. It might sound simple but you’d be surprised how many people spend so much money on luxuries they don’t need. That’s fine if you can afford it, but it’s not if you can’t.
Do you really need to dine out each week?
Is that satellite TV subscription necessary?
Work through your monthly outgoings and work out if it’s all really necessary.
There might be a lot you things can do without, in an effort to save money.
6. Earn More
Again, earning more will help you financially. That much is obvious. But you’d be surprised how many people simply sit in the same job for years when they could be earning more.
Try looking for new jobs or even telling your boss you’re considering leaving for more money.
They might offer you a raise on the spot.
7. Quit Smoking
Not only is smoking bad for you, but it’s also extremely expensive.
You could save money every month as well as even more on medical bills if you kick the habit.
8. Move Homes
You might not want to move homes, but it could be the only option if you’re really in a tight fix financially.
Moving out of the city could free up more cash, or downsizing might put you in a much better position each month.
9. Borrow less
There’s a much bigger borrowing culture these days, but is it necessary? Try borrowing less as it’ll save you money in the long run. Save for things and only spend on what you need rather than what you want.