Most of us have a goal each year of what we want to pay off, save or invest. However, with emergency expenses, gifts, and just things that we want to buy, see, and do, it can be extremely easy to lose track of our original money management goals we set at the beginning of the week, month or even year.
Well, what better time like the present to crack down on money management? Here are some basic money management steps to get you started.
1. Find out where your money goes. The first basic step to gaining control of your finances is to find out where your money is going versus what you’re taking in. What are your typical expenses? What are your priority expenses? And what do you have left over? Once you have determined what you’re spending, where you’re spending it, and how much, gaining control of this is much easier.
2. Budget, budget, budget. Once you’ve figured out where your money is going, the next step is to set budgets for each area. You should set budgets for your rent or mortgage, gas, food, utilities, and any other expenses, then see what you have left over and what you can budget for entertainment or fun, if anything.
3. Plan for emergencies. Once you’ve conquered the first two steps, then you can begin taking the money you’ve stopped spending and begin saving. You should always begin saving for a safety nest egg first for emergencies. That way, when emergencies happen (and they DO happen…), you’ll be ready for them and won’t have to use too much cash, sacrifice bills, or rely on credit.
4. Watch out for debt. As you get a hold of money management, one of the things you should also keep an eye on is your debt. Are you using any of your budgeted resources to begin paying down debt? Once debt is properly tackled, it’s easy to rack it back up again if you aren’t careful. Once you have paid debt down to a manageable amount or to $0, be careful not to sink yourself back into debt again.
5. Rely on cash. One way to avoid hiking up even more debt is to rely on cash instead of credit. If you are the type of person to use credit cards for everything, maybe it’s time to rethink that money management strategy. Relying on credit can sink you back into debt if you aren’t properly managing it, and can even cost you more money in interest over time. Try to rely on cash as your first resource whenever possible.
It can be difficult at first to really get a handle back on money and debt management, but with a little discipline, dedication, and perseverance, it is possible. If you need a lump sum of cash in the beginning to get a hold on money management, contact Affordable Title Loans to learn how cash title loans can help you pay off initial debt while you budget and tackle your other expenses and finances. Affordable Title Loans offers some of the best rates in the industry. Contact us at one of our Utah, Idaho or Nevada offices to learn how we can help you today!