If you are like most of us who would like to be able to buy the things that you want in life but don’t have the means to do so, then probably it’s about time for you to take a look at your finances. Most of the time, we tend to bite off more than we can chew and end up with nothing but debts. That is why taking control of your finances is a good choice. However, this comes with a lot of responsibility and self-control.
Taking control of your finances
There are so many ways on how you can take control of your finances. Every one has a different method, and you will need to find which one works best for you and fits your life style. Here are some ways on how you can take control of your finances.
1. Write down your expenses
You will need to write down what your living expenses are. This includes your rent (if you do not own a home), car payment, phone bill, etc. Try not to leave anything out, and it would be a good idea to leave a little extra for unpaid things that can happen in your life.
2. Know what is left
Once you have a figure of what your bills are, then you would put down what your take home pay is and deduct this amount. This will show you what you have left over.
3. Take care of your debts
Now that you can see what you have left over, this will give you an idea of how much you can start paying on the other debts. It would be a good step to start on the loans that have higher interest rates.
4. Come up with a payment plan
Calling your creditors and settling a payment plan that fits your needs and won’t put you behind would be good. But this is hard because they will always try to push you to pay more. In like most states, $25 a month payment is the minimum. This all depends on the state you live in. You have to be firm with them and try to settle a payment in your favor. This will keep your credit score up since it will show that you are attempting to pay your bills off.
Having a good credit score can help you control your finances because good credit will save you in interest on your payments. Therefore, you always have to keep a close eye on your credit score.
5. Think of the future
When you start paying off your debts, then you can start looking into a savings account or a 401k as this will help you take control and manage your finances in the future.…