Financial management, the phrase that makes your face turn upside down every time you hear it. But alas, don’t fear it, accept it. We don’t mean big scary databases analysing your every penny, but rather getting to grips with your financial activity and taking control. Now we’re no financial experts but there are some handy tips that we have picked up along the way that we thought we’d share to those in their first professional job.
Whether you have the niggling voice reminding you about your student debt or daily worry about your monthly bills, we have some tips and tricks to get your financial management in tip top shape! Firstly, we ask what are you doing to help yourself? Do you have a limited amount of spending money per month? Do you budget? Or do you moan about your lack of cash and yet do nothing to improve it? We’ve all been there don’t worry. But there are some healthy habits you can pick up to stop the routine from continuing.
1. Keep a record of where your money is going. Do you know when a certain bill is being paid or if you could align your bills to be paid at the same time? We all know that money can be overwhelming but if you try to keep track of your spending then it is likely that you will feel a lot more organised… phewwww. Mobile banking apps are handy as they allow you to easily see your payments or creating a spreadsheet on excel can help to monitor your money monthly.
2. Set goals. Aiming for goals applies to nearly all aspects in life so why don’t you use it when it comes to tracking your spending? Do you want to save X amount of money by Christmas time or go on that luxurious holiday retreat next summer? Or do you want to be able to spend a little extra on your weekly food shop? These goals can be big or small. And next time you buy a coffee and a sandwich or jeans, think about how many hours of work they equate to. By setting goals, it won’t be long until you find yourself in a routine and wanting to save, not spend, spend, spend…
3. Cut back. Probably the most obvious tip but we all know that when your first wage comes in, your wish list on ASOS calls you. The temptation of takeaway lattes, cocktails and eating out can be strong… but you must resist. Cutting back goes hand in hand with tracking your spending. If you can physically see what money you have left over, then it’s probably likely that you won’t want to spend it. But even if you don’t feel like that will work then why don’t you put your money into a savings account? That way you’ll have to go to the bank to withdraw the cash and who can be bothered doing that, right?
4. Build your credit rating. Having a poor credit rating may not be one of your worries right now but it will sure catch up with you in the future when you go to buy your first house or take out a loan . So why don’t you start now that your income is somewhat stable. If you’re doing all of the above then you will be able to pay your bills on time and you won’t miss out on attractive deals in the future. For more in-depth advice on building your credit rating visit GoCompare