If you are thinking about a new start for the New Year you might find that creating a new budget and finally getting out of debt is going to be your top priority. It can be tough sticking to a budget and learning the art of saying no, but with these easy tips they might help to make the transition easier to manage.
Working Out Annual Bills
When you are setting a budget try and build into this ways to put money aside for annual bills like insurance. Then when the bills are due you will have the money to pay the bill directly and this can save you money each month because many companies add a percentage of interest onto the bill. This can save you more when you come to renew the policy.
It is easy to work out how much you will need, if the amount changes each year add a little bit on to the amount and then divide this by the number of months before the bill is due.
Reduce the Cost of your Grocery Bill
There are many tips that can help you reduce your groceries each month and this can be difficult if you don’t want to go hungry in January. What you can do is aim to cut a small amount from your grocery shopping each month, not much just $5 at a time, but know the limit, have an amount that you can’t go below. If you are able to save this money, then when the festive season comes around again you can use this money that you have saved for your festive food shopping.
Present Time
If you are determined to get hold of your budget then you need to consider now how you are going to pay for the following season’s presents. The best way to do this is to start saving. The more money that you can put away now, and every month will mean that there is less money that you will need to find in December and January. The credit cards won’t get used and you can save a fortune next year. You won’t be paying the credit card companies interest on the money that you would normally have borrowed.
Current Debt
If you have debt, like a credit card, then this is the time that you need to plan to pay down this debt. List all the money that you owe, include the interest rates and the minimum monthly payments that you make. Chose the card with the lowest balance and start working towards paying it off, pay more than the minimum balance and watch the balance drop each month, don’t put more money onto the cards unless you have the money to pay it off. Once you have paid off one debt congratulate yourself and focus on the next debt to pay off, continue this method until you are debt free. Plan to be debt free in 5 years and work towards this goal one step at a time.
Future Credit
If you are thinking about a new car or a mortgage then you need to consider your credit rating. The harder that you work at paying your bills on time and not getting late fees will improve your credit score and this will mean that when you need credit in the future you will get a better deal, with potentially lower interest rates saving you money on any future interest payments.