Dealing with money can be a complete minefield when you leave home and are responsible for your finances for the first time. Paying rent and bills, budgeting and working out exactly what needs to come out of your account and when can be tricky to get right. But learning how to do so is so important, whether you’re working with a little money or a lot, you need to know how to put it to its best use and make sure you’re not getting into trouble financially. Here are a few tips to bear in mind.
Create a Budget
First is the obvious- actually creating a budget. You need to know exactly what comes in and goes out each month, and exactly what you’re spending. Budgeting apps and programs make this really easy to do. One useful tip for paying bills is to open a separate account and use this just for bills. That way your regular money to spend isn’t coming in and out, and you know exactly what needs to come out. Work out where you’re overspending and do what you can to put this right. For example, could you walk or bike to work instead of getting the bus? Could you take a packed lunch instead of buying food while you’re out? Are you getting the best deal on your utilities? A simple search through a comparison site will let you find out. Either way, set your budget and be efficient when it comes to paying your bills. It’s not much fun, but something that everyone has to do.
Earn Extra Money From Home
Another way to make your financial life easier is to have a way you can earn extra money when you need it. These days there are plenty of opportunities to earn cash right from the comfort of your own home, so you don’t even need to take on a second job. You could start a home business, take a look at a company like this if you need money to get started. But many home businesses are cheap to start and allow you to pour your passions and creativity into something productive. And of course, earn you money at the same time. You could sign up to some freelancing websites and take on some projects during the evening and weekends if you’re having an expensive month. Either way, having a legitimate and reliable way to earn cash in your spare time can certainly make life easier.
Be Careful With Lending
Sometimes lending money is a good thing. If it’s for something worthwhile like a car, a vehicle (if this means you will have better opportunities for things like work) or education. But often borrowing can mean a slippery slope into debt. The trick is to not live beyond your means. Don’t use credit to buy things because you can’t afford them, or for essentials like bills. If you can’t afford to cover your basic bills then your budget needs to be reworked, lending money will get you further and further in trouble. If you’re already getting into a pickle with lending, one trick is to take out a consolidation loan. That way you can pay everything back and close all of the accounts. You only have one debt to pay each month then instead of money, making it easier plus you save on interest too.