Being an adult is not an easy task. With having to go to a job along with juggling social life and housework can tire anyone. Add the additional task of managing your finances and you almost want to escape this lifestyle. However, improving your personal finance doesn't have to be difficult all the time.
There are some proactive tips and tricks that can help you out. Whether you employ those tricks or not, it is absolutely vital for you to take a close look at your finances especially since you never know when a giant unexpected-expense can come your way and you don't have your credit card or family members to resort to.
In other news, it was found out that around 62% would become homeless if they left their jobs and missed as low as even a single paycheck. Sounds daunting, doesn't it? Well, fear not, as we have 5 tips which will help you in your pursuit of improving your personal finance.
#1. Do an audit of your spending
When was the last time you inspected your accounts and bills? If you are like most people who shirk away from the responsibility of correcting any errors then you are making a big mistake and probably costing yourself a lot. It's time to become responsible for your finance.
Bills often come with errors and if we don't pay attention to them, we end up paying for expenses which we didn't even incur in the first place. Sometimes, your credit card can also have a fee charged which doesn't apply on your account. But these things are only brought to the limelight when you pay attention.
#2. Monitor your expenses and grow your income
If you don't keep a journal of the expenses you incur, how do you plan on setting a budget and a savings plan for yourself? Monitoring your expenses is the best way to get on the fast track of improving your finances.
We know in this day and age, keeping a good old notebook and a pen and carrying it around everywhere isn't practical. But now that we have our smartphones and a variety of apps to choose from, browse for a money manager app. Be sure to put in details of every single thing you spend money on. This way, you will be able to see where your money goes.
Besides keeping your expense low, you also need to grow your income. There are the countless number of books you can read but if you want to take action, there are many courses you can join. This is a good list of courses
#3. Purge unnecessary expenses
Now that you have a clear-cut view of where your money goes and how much of it you spend monthly, check to see the unnecessary expenses you can purge. For example, if you have a gym membership and you don't even go, then it doesn't make sense for you to spend money on that. Similarly, if you go to the grocery store every weekend and end up spending money on unnecessary things then limit your visits or take with you the amount of money you need for important things so that you don't end up splurging.
#4. Make a savings plan
The whole point of purging your unnecessary expenses is to save the extra money you have lying around for rainy days. It is crucial to have a savings plan because let's face it, when you get a bit older, you'd want to have your own house, right? Or maybe you'd want to go on a trip abroad at the end of the year. How do you plan on paying for those things? A savings plan will help you achieve that.
#5. Get into inexpensive hobbies
We all need hobbies to get by. While some hobbies are expensive like eating out and shopping, others such as doing sports or painting are almost free. So, get into the habit of incorporating such hobbies in your life.
