Stay On Top Of Your Personal Finances
It’s just as important to keep track of your personal finances as it is business finances. It’s easy to let your personal finance records go untouched with the chaos of everyday life, but it’s important to make good, disciplined financial choices on a regular basis and the best way to do that is to stay on top of things!
Keep a log.
Where are you spending your money? Write it down! Make a habit of sitting down at the end of every day and writing where you spent your money and how much, at the very minimum. You could take things a step further and detail what the purchase was or if you paid debit, credit or cash.
Record your income.
How much money are you bringing in? In another log, record your income every single time you’re paid. If you have one job, you don’t need to list more than how much you were paid and when. If you’re a contract worker or have many odd jobs, it will be important to keep track of where your money is coming from, especially if the amount fluctuates on a check-by-check basis. This way, you’ll have these detailed and specific records to look back on.
Pay off your debt.
Are you regularly paying off the debt you owe? This could be in the form of credit card payments, student loans, medical bills, auto loans, and utility bills are just to name a few. A helpful tip is to work toward paying off the debt with the highest interest rate first! Keep consistent and soon enough your debts will be paid.
Be responsible with your expenses.
Are you throwing money around left and right? Cut out unnecessary and frivolous spending and watch your savings grow. This requires discipline and self-restraint, but can start paying off quickly. Remember your needs and your wants, and keep focused!
Automate where you can.
By automating your regular bills and payments, you don’t even have to think about paying on time! You won’t miss a payment and you’ll know it’s taken care of. You’ll receive email confirmation and can move on with your day.
Review at the end of the month.
Add up your overall expenses, your total income, and determine if you were ahead or behind for the month. Then, reflect on where you spent your money. Can you cut back anywhere? Did you make as much as you did last month? Make observations and move forward making money conscious decisions.
These are some easy ways to stay on top of your personal finances. Make your finances a priority and stay consistent with these actions.