How to Take Control of Your Finances in 4 Steps
The key to taking back control of your financial situation is being organised. Being organised means you’ll have less stress in your life, and when curveballs come your way you’ll have a plan in place to deal with them. Learn how to control your finances today. Here are the 5 easy steps to take control of your finances in 2021:
How to Control Your Financial Situation in 4 Easy Steps
If you need help with your finances but don’t know where to start, follow these 4 ways for taking control of your finances in 2021.
Step 1: Create a budget
This sounds like something everyone says, but in reality no many people have a written budget and stick to it. Having a budget can make a big difference to how you view and manage your money.
The main thing to remember when creating a budget is to calculate your income and expenses. Split your expenses into two categories – one for fixed expenses that you know won’t change and one for variable expenses. Then you can start monitoring your spending to make sure you haven’t missed anything.
You can also split your expenses into ‘what you need to spend’, ‘what you want to spend’ and ‘what you want to save’.
Step 2: Don’t back away from savings
Having a dedicated savings plan should be non-negotiable. The amount you decide to save can be any figure that works with your budget but make sure you have a plan to at least save something each week. Even if you’re not saving for something specific, having a savings account will help you cover unexpected expenses or emergencies.
Step 3: Keep your credit report in good order
You might not think you need a good credit report right now, but trust us, in the future you might need it. Things like paying your bills on time and keeping your credit cards under their limits and making all minimum payments on any credit facilities all contribute to providing you with a good credit report. A credit report will be used by a lender when it comes time to apply for a home loan for example. If you don’t know what your credit report looks like or what your credit score is at the moment, you can ask your mortgage broker to help access it for you.
Step 4: Prioritise debt repayments
With 2021 now in full swing you may be aware that there are some super low interest rates available. Therefore, you could be saving yourself thousands of dollars by refinancing your current loans to one with a lower interest rate. When you refinance a home loan you may also have the opportunity to consolidate any personal debt at the same time such as much higher rate credit card debt.
Talk to a Finance Broker
To control your finances in 2021 you can follow the above given 4 easy steps. We recommend contacting us for a mortgage health check to ensure you’re not paying more interest for your home loan in Brisbane than you need and start 2021 with financial stability.