Dorkface

Money might not be the key to happiness, but it certainly helps. Worrying about money is one of the worst things in the world, which is why I’ve worked hard to stay in control of my money and I want to help others do the same. Here are five ways to take control of your finances.

Start a spending log

The best thing I think anybody can do when they are trying to take control of their finances, is to start keeping a log of everything that they are spending. This doesn’t have to be forever, but even a few months can open your eyes to how much you are actually spending. This is particularly useful for people who should have spare money at the end of the month on paper, but who struggle with not knowing where their money is going. 

Borrow only what you need

Sometimes the budget doesn’t stretch far enough or an emergency expense might come in, and in that instance you may need to borrow some money. While it can be easy to fall in to payday loans because they are quick and accessible, they aren’t great for your credit and can often come with a very high interest rate. I like Polar Credit because they work almost like a virtual credit card – they make a certain amount of money available to you, but you only borrow what you actually need. This keeps you more in control of how much you are borrowing, and can lower the amount that you need to repay.

Set a strict budget

Costs can run away with themselves. Popping to the shop a few times a week can really start to add up, so set yourself a budget for the whole month on pay day and make sure that you make an effort to stick to it. Be realistic with yourself – there’s no point setting yourself up to fail by giving yourself too small a budget to survive, and you want to make sure that you have wiggle room for any tough situations that might pop up.

Communicate about money

If you are living with somebody and trying to improve your finances, it is really important that you talk regularly about your finances. This means that you can check that you are still on the same page and working towards the same financial goals. When it comes to money it can often be easy to slip up, but talking about your finances – even if it’s just with a friend – can be a great way to be accountable to somebody and keep yourself on track. 

Track your credit score

Your credit score is not the be-all and end-all of your financial life, but it can often be a pretty good indication of how you’re getting on with your money. Start to take note of your credit score in frequent intervals, to see how it is changing based on the financial choices you are making. Don’t be shocked if it sometimes goes down after you’ve had a good week – sometimes things can pop up from a long time ago that hadn’t made it to your report before, such as any borrowing you have had from a direct lender or even a missed payment on a utility bill from years before. Stay consistent and keep an eye on your score to see the positive changes taking place.

 

What do you do to look after your money? Leave your ideas in the comments below.