We would all like to keep more money from our paychecks and to let it build up for bigger purchases or vacations. Some of us get into the habit of spending every cent and then waiting for the next lot of money to arrive. A lot of what we do is habit, and spending habits can be changed with just a little forethought and planning.
Stop Using Credit Cards
Credit cards make you feel richer than you really are, but what you have to remember is that it is not your money you are spending. You are borrowing it from the credit card provider, and it all has to be paid back, plus interest. Credit cards are one of the most expensive ways to finance anything. You would be better off with a bank loan if you have not got the cash for a larger purchase.
Stop Buying What You Don’t Need
We are all guilty of treating ourselves sometimes, but until you have your finances under control only buy the essentials. Use any spare money to pay off those credit cards, as the sooner you get rid of them the better. Overspending is very easy, but it can also be simple to stop.
Write down everything you have to pay out and what you have coming in. This will give you a clearer picture and you are less likely to spend money you have not got.
Check Your Bank Statements
Generally, banks are very good and do not make many mistakes, but no one could say they never happen. Check your bank statements closely and make sure that every payment that has gone out was made by you. If you are self-employed this is even more important, as money going out that shouldn’t, could cause you cash flow problems.
While you are examining them, see if there are any old subscriptions you no longer need and cancel them.
Pay Less Tax
None of us like handing over money to the taxman, but we all have to. In reality, we should all hope for million dollars tax bills, because that we mean we had made a lot of money. When you have your own business, it can be difficult to know what you can claim against tax and what you can’t. Even if you know these things there are an awful lot of rules and regulations to comply with. This is why the majority of self-employed people use accountants for tradies, and the like, to assist them with tax matters. A good accountant will save you more tax than they cost you in fees, and you will know that your tax affairs have been handled correctly.
Save, Save And Save Some More
Start by saving a small amount each month, you will be surprised how quickly it grows. As you reduce other outgoings you will be able to save some more. Saving is one of the good financial habits to get into, and if you have never done it before, you will soon realize how good it feels to have some money in the bank that really is yours.