3 Ways To Take Control Of Your Finances

Taking control of your finances is one of the best things you can do, because it can bring such a strong sense of freedom when you are able to achieve it. It can be really overwhelming, so we’re here with 3 simple places to start to help you really get to grips with where you’re at and small changes you can make to move in the right direction. None of these things are unachievable and won’t cost you anything, so this is your sign to take a positive step towards financial freedom! 

Be Realistic About Where You’re At

To really be able to move forward in a positive way, the best thing you can do is to be realistic about where you’re currently at. Sit down and look at all of your bank accounts, savings, as well as any debts that you owe, and see where you’re at with everything. Once you know how much money you have, or how much you owe, you can make a more realistic plan moving forward. Maybe you have money in a savings account that could be used to pay off your debt, because the interest that you’re paying on the debt is much higher than what you are gaining in your savings account. Or, if you feel like your debts are unrealistic and you won’t be able to pay them back, then you might need to look at seeking IVA advice to see if that would be a good option to decrease the monthly cost of repaying your debts. 

No matter which direction you go in, it’s vital that you are honest with yourself about your debt, as scary as it might be, to help you move forward in the right way. 

Create A Thorough Budget

 Now that you know where you are with your finances, it’s time to make a budget. List down all of your expenses, starting with absolute essentials that you have little control over, such as rent, bills and debt repayments. Then, list down more essentials but ones that you can control more, such as food shops, cleaning supplies, insurance, essential clothing, etc. Finally, list down non-essentials that would be nice to have, but aren’t a necessity, things like savings, holidays, going out, other clothing, etc. Look at your essentials that you can control and identify where you can cut things back, for example don’t let your insurance policies automatically renew, call them up and haggle to get the price down. You could look at ways to save energy to reduce your bill, or make changes to your food shop. We’re going to cover the food shop here today as it’s such a simple change to make! 

Cut Down Your Food Shop Cost

So many expenses are out of our control these days, but one thing you can control is the cost of your food shop. The best way to do this is to sit down on a Sunday morning before you do your food shop and make a list of what you will eat for breakfast, lunch and dinner everyday. From here, make a list of everything you need for the week, then go to the supermarket and be really strict, only getting what's on the list. You will cut back on food waste and save a lot of money doing this! Make sure you choose a more affordable supermarket and avoid small express shops that are very expensive. Finally, try swapping out some main brands for supermarket own versions and watch the price of your food shop decrease significantly.