5 Tips To Sort Out Your Finances

I used to be a couple and utter scatter brain when it came to money.  If I wanted something, I usually bought it, without thinking of the consequences to my bank account, or credit rating for that matter.

This lead to credit cards, loans and ended up in a situation where I could barely keep my head above the water; but my head was buried in the sand.  After getting paid one month and realising the day after that there was barely anything left, I realised that something needed to be done.

I was getting to a stage where I needed help paying bills, my credit card bill was sky high and the dollars coming in did not match what was going out.  I managed to remedy the issue and my debts over the next few years and picked up some tips along the way which I thought I would share with you today.

Find out just how bad it is

When you realise that you had gotten yourself into a situation, everything has to come out.  Find out exactly what you owe, just how many credit cards you actually have, what you are spending your money on every month.

The first thing that I did was to look over my bank statements and credit card bills for the past six months to look at what I had been buying.  I made a chart with my justifiable expenses on one side, and the extravagances on the other.  I bet that you can guess which side had more entries.

Make A Budget

Sounds basic, but when I say make a budget, I mean for everything.  Break down every cent that is coming in and list everything that has to come out and on what date.  Make a 30 day planner and write down when bills are coming out and how much for.  If you are buying your lunches, make them instead.  STOP BUYING EXPENSIVE COFFEE SHOP COFFEES!

Be honest with your credit providers

When I realised just how much I owed to my credit card providers and loan company, I started to look at debt management companies.  Many seemed to offer the same sort of service, for a fee of course, which involved going to your credit providers and negotiating a lower monthly payment and a halt on interest.  I decided to cut out the middle man and go to them direct.

I managed to get my credit card company to freeze my account and stop any more interest going on.  I was completely honest about what I could afford and made a payment plan with them which was management.  Remember, they want their money back, what they don't want is you to stop paying completely.

I managed to make a payment arrangement with all of my debtors, with varying degrees of helpfulness from them.  But it did ease the situation and enabled me to pay them back faster and without the worry of demand letters and Court judgments.

Save

If you are trying to pay off your debts, can you really save?  Yes, but start small.  I was given a large piggy bank styled as a fashion boots many years ago and decided to put it into action.  I only put the smallest denominations into the boot, pennies, cents etc whenever I had them in my purse.  It took around 6 months to fill the boot and I was presently surprised just how much it added up to.

I would like to say that I used the money to pay more off a bill, but I didn't.  I did use it to buy someone a birthday present so that still counts, right??

What I also tend to do is take advantage of discount opportunities and vouchers codes from places like Dealsdaddy and Dealsqueen.  There are always going to be things you need to buy at some point, so why not take advantage of a discount!

Sell

If you have been throwing your money around for the good few years, the chances are that you own more stuff that even thought.  Go through everything and be brutal.  Sell what you do not need or had forgotten that you had bought.  Stuff will only ever be stuff and does not enrich your life, or your bank account!

Finally, don't beat yourself up about it.  It does not help.

You got yourself into that situation and you will get yourself out.  It will take time, effort, concentration and a stranglehold on your finances for a while, but you will get there.

Fast forward a few years and my finances back in order and I am saving for the first holiday abroad in 8 years.   Time for a long awaited cocktail by the beach.  I think I have earned one.

*Collaborative piece

Score With Your Credit

Saving is something that we all strive to do.  Whether you are saving for someone's birthday treat, a holiday or in my case, saving for my future move; we all have times in our life when we try to actively save.

When you are living from payday to payday, trying to save and conserve your money can be challenging, but there are a few tips that I have picked up over the years that can really help, while still letting you enjoy a few things that you enjoy.

You Don't Need To Cut Out That Treat Coffee

Coffee is life.  For me anyway.  The idea of the cheap ground coffee that we have in the office makes me shudder.  I NEED real coffee.  But can I justify the daily trip to Starbucks?  No.  The £3-4 pounds a day I would, and have, spent in the past would be better placed in my savings than wasted on a temporary coffee hit.

One way to work around this is to buy your own fresh coffee and a one cup cafetiere and take them to work with you.  Get to work ten minutes earlier and you can make your coffee without the boss complaining of the extra time involved and you can start your day with a delicious coffee hit.

Cashback on your Purchases

We all love shopping and sometimes, even when you limiting your clothing and shopping budget, you may need to replace your favourite makeup product or buy a necessary kitchen appliance.

I have signed up to a site called TopCashBack which gives you cashback on online purchases.  Yesterday I wrote about the makeup products I use and one of them is Benefit Dandelion Powder , which is currently on sale in LookFantastic.  You can get up to 10% cashback on that site and the cash can surprisingly really build up.

Use a Piggybank

I have a long pink boot shaped piggy bank that I throw my spare change in.  The thing about piggy banks is that they are very tempting at the end of the month to break into when you are short on cash.  
The way that I combat that is to only save certain denominations of coins so that you would need a lot to make a difference.  I only save copper and 5, 10 and 20 pence pieces so that it does not tempt me to dip me.  

Having a larger piggy bank means that you can save for longer and get a nice surprise when you take it to be changed.

Keep An Eye On Your Credit Score

If you have a poor credit rating like me (damn carefree shopping years), it is important to keep an eye on your credit score and work hard to improve it.  You can check for free these days and it can really help in improving score.

Things to work on are not necessarily the bigger balances that you need to pay off.  I always used to focus on paying off the bigger balances and paying a minimal amount on the smaller ones.  But paying off those smaller ones can help to improve your score so bear that in mind.

Hope the tips help, happy saving!