The end of the year is the perfect time to plan your family finances again and start the coming 2019 with a bang. Instead of the classic statements: “I still have time .”, “I have nothing to save from .”, “If I only earned more .” – think about debt baggage that imperceptibly builds on your shoulders. And there probably is, because past due commitments, “in the form of loans or credits, are growing” rapidly and cause a lot of trouble. That is why today we present 7 simple ways to avoid a spiral of debt!
You don’t need a mess in finances!
Christmas is almost here, and you don’t feel like pre-Christmas cleaning at home – let alone fight the clutter in your budget? Remember – time is money! We have known for a long time that wasting time is superfluous and associated with financial losses. Add to this nerves and stress when you can’t find your purse and keys – and you won’t leave the house without it! The sum of the summary, the time lost in searching causes that you hit late for work . And in addition you are angry, because everything you need right now is not in the right place.
That’s why you can’t say that taking care of your finances is time consuming! Yes – if you brought your wallet to a state after a catastrophe then you will have a long and winding road. Fortunately, systematic “cleaning” and putting money away “while” will allow family peace, save time and soothe the nerves that you waste every time you are looking for the necessary items.
24-hour finance control
The report of the Association of Polish Banks shows that Poles’ savings in the last 8 years have increased by 70%. We show the greatest attachment to cash and deposits, which, despite the low interest rate, are the safest forms of payment. Despite this, it is still quite pale compared to other European countries. What’s the problem? Maybe start to make a meticulous home budget that will keep an eye on your household expenses.
Get rid of the approach: “there will be time for saving .”, “I can afford it .”. Why do you have such a laid-back approach to finance? In fact, the biggest problems can be the lack of adequate financial knowledge and reproduction of myths. In today’s world, it is consumption that counts, not saving for a “rainy day”.
ADVICE! – go back a few months with your memory and see what your expenses have looked like recently. Thanks to this you will find out what are the real costs of maintaining your family, at what moment money “runs out of the wallet” and what is the problem of lack of savings.
Plan financial goals and large expenses
According to a study conducted in the first quarter of 2018 by Maison & Partners – the topic of money is the most common cause of arguments in relationships. Such outbursts usually relate to unplanned and large expenses (24%), not to pay attention to your financial obligations, such as paying bills (13%) or arguments about your partner’s earnings (10%). However, financial sins are not only a source of misunderstanding, but also fears in the form of expenditure control. How to counteract this?
First of all, money must stop being a taboo subject in your family! After all, the whole sense of sound budget management is based on expanding financial knowledge and frank conversations with loved ones about the existing problem. Therefore, plan your expenses in advance – which will also allow you to “hunt down” price opportunities. If you are thinking about refurbishing an apartment, replacing equipment or vacationing abroad – take it into account in your budget, but also look for additional savings! You probably know that interesting sales always end when you want to use them . And then such clever price research is a great way not to overpay!
Knowledge to the power of the key!
Get rid of the ostrich effect and don’t hide your head in the sand when it’s time for a frank discussion. This is not a good way to escape from problems because they exist – even if you run away from admitting the truth. Unfortunately, the world is moving forward, so there is no reason for you to stand on the opposite side of the barricade .
What do you do This is of course about expanding your knowledge and financial awareness. Look for solutions that will allow you to expand your competences at a low cost. How? Follow banking pages and blogs. Be active in discussions in your business environment. This unusual approach can inspire you to look for new sources of income or ways to invest capital.
Keeping track of commitments is essential!
There is a wide range of assortments in this matter. After all, each of us has a contract for a phone call, gas and electricity charges, digital TV or the Internet. Some of them concluded for a specified period automatically go on indefinitely! It is worth keeping an eye on their duration!
At the end of the contract – go to the service provider and try to negotiate a better offer. Who knows, maybe you’ll get a free minutes packet, faster connection, or more free channels? If the operator does not offer better solutions, remember that sometimes it is better to leave the competition. This also has a dimension in banking issues. After the deposit date, the money very often goes to an interest-free bank account. And hence you have to withdraw them manually . Also check the rankings of deposits and bank accounts, as well as use the loan calculator to decide on the best offer. Maybe someone has more attractive conditions than you currently have?
Consistency + Savings plan = Financial cushion
A good financial plan is a solid basis for saving. You probably know – “a few dollars there and here, a small mandacik for free riding or a modest debit on the bank account .” Unfortunately, such ill-considered wastefulness can take on considerable proportions. After all, interest and additional reminders are increasing from month to month. Penny to a penny . – and after a few years, from 50 dollars, your debt increases to several thousand dollars!
Therefore, in order not to overlook any, even the smallest amount, regularly pay your liabilities. Ba – enter a family “business plan”. Subtract from the sum of revenues the amount necessary for expenses so as to accumulate an emergency fund and have good ground for building a financial cushion. Know that random events can “hit” on family finances, and a larger sum of money is a guarantee of security.
If you already have a financial pillow, think about its relevance. In the New Year, it may turn out that the sum you accumulated a few years ago has nothing to do with your current expenses. The ground under your feet and a good night’s sleep will be ensured by accumulating a budget, with three times the amount you spend on life.
Set credit limits and appreciate the budget!
No matter how tempting and drilling a hole in the stomach is the thought of impulsive buying – it is not worth taking loans for your own whims! Before you decide on anything – check the total costs of the commitment, and above all your financial possibilities and repayment regulations.
Few people realize how clever lenders can be who hide the real cost of a loan. Because 0% installments do not mean that it will be for 0%, and free credit cards are not free . It all has a price, which is why reading contracts is so important! Thanks to this, you will protect yourself from paying unnecessarily “high” installments.