It doesn’t take much for your finances to start to look less than healthy. It can be as simple as a holiday that got out of hand, a vigorous shopping spree or an unexpected bill that hits your credit card hard. Whatever the reason, when you find yourself struggling to make ends meet you can feel frustrated and helpless. Here are 3 simple tips to help you detox your finances.
Do a Diagnosis
Before you can start to work on a solution to your financial difficulties, you need to know exactly what is going on with your accounts. Be honest with yourself and compile a list of all of your personal debt, list your savings and create a record for easy reference so that it is on hand for when you work on your budget. Having a clear understanding of your financial situation is one of the most crucial aspects of your financial detox.
Work on Consolidation
When it comes to maintaining healthy finances, you should consider any debt to be like a disease. Left unchecked, it will slowly destroy your savings and potentially cause serious problems in the future if your credit rating has been affected. Your top priority should be to work on eradicating your debt. Sometimes the best way to do this is to organise debt consolidation, which simply combines all of your personal debt into one easy to maintain loan.
This simplifies your finances by creating one easy monthly payment, often at a much lower interest rate than your current credit cards and loans. For more information on consolidation, or just general advice on what to do with your debt, contact the professional team at Fox Symes debt solutions and see how they can help you detox your finances.
Now that you’ve worked on reducing your debt, you can start working on your budget. A budget is the ‘miracle diet’ that has the potential to detox your finances for good. The key to a good budget is to be clear, realistic and conscientious. Total up all of your expenses and work out how much you have to save every week just to meet your bills. Once this is done, see how much is left over from your income and give yourself a weekly allowance, and dedicate the rest to savings.
Sticking to your new budget might seem difficult at first, but you’d be surprised just how fast saving becomes a habit. Just make sure you keep your budget updated with any changes to your circumstances, such as an increase or decrease in pay, rate or bill rises, car costs and anything else that might affect your weekly spend.
When it comes to detoxing your finances, remember that the key is to act fast. A small financial issue can soon spiral into serious debt if you aren’t careful, so be mindful of these simple tips and keep your bank balance in the best possible shape for good.
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Written by Alex Howard