It’s easy to get overwhelmed by the constant increasing of costs in day-to-day living. In the current environment, every time we read a newspaper or hear the news there are further increases to interest-rate’s, food and petrol etc. It seems like our pocket is constantly being drained. So, how do we start to help ourselves?
Firstly, we need to understand where our money goes and the easiest way to do this is to have a budget. Having a budget helps us to be accountable for our spending and makes it easier to identify areas of spending that we can cut back on. In today’s world of easy credit, you can quickly find yourself in a position where you are spending more than you earn. Start by writing down everything you spend, don’t forget to include things like coffee and the newspaper that you buy on your way to work. To understand you’re spending properly you need to capture everything.
Another area you can look at is your level of debt and what type of debt you currently have. Most families today have a mortgage. Believe it or not the mortgage payment is usually not the issue. The issue is in the level of unsecured debts that we have. These include credit cards, personal loans, leases and products that are buy now pay later. With these types of debts, you can soon find yourself robbing Peter to pay Paul, that means, whoever yells the loudest gets a payment first.
Understanding your budget and taking control of your finances will help to relieve the stress of the day-to-day changes in your finances. You could also consider consolidating your debts. By using the equity in your home to pay off credit cards and other debts that you have taken on over time you can reduce your monthly commitments and improve your cash flow. You don’t have to wait until things are at their worst to ask for help.
There are also different ways that you can pay debt. To understand this further talk to professionals who will be able to suggest ways that could improve your situation. This may include your accountant, your bank or a mortgage broker.
Help yourself to sleep better at night.
Call Angela on 0414608970 to discuss your situation or make a booking to call.