We’d all love to have some extra money in our pockets at the end of the month. Look at most people who say this, though, and it won’t take long for you to see how few take any real action. It doesn’t have to take up much of your time and it doesn’t require any specific knowledge in order to do it. Absolutely anyone can improve their financial help with a mere five minutes of spare time.
Here are five fabulous ways to improve your financial health.
See also: How to Keep Track of Personal Spending
1. Create a Money Journal
You can’t control your money if you don’t know where it’s going out and where it’s coming in. It’s easier than you think to lose track of how much you’re spending and earning. This is why people so often turn to credit cards, along with the resulting high debts.
What people have to realise is you don’t have to become an accountant to make this work. All it takes is a notebook and a willingness to enter any financial transactions you make into it.
2. Know the Value
Spend five minutes reviewing any purchases you do make. If you spent a few dollars on a snack, consider whether that was a good use of your money. Could you have found a cheaper alternative or brought something in from home? Little considerations like this will help you to eliminate any unnecessary expenses.
You can do this on the commute to and from work!
3. Automatic Savings Transfer
Once you’ve assessed how much you have left over at the end of the month, setup an automatic savings transfer with your bank. This will act like a bill, and a portion of your income will automatically leave your account and end up in a savings account. If you don’t believe you can practice financial discipline of your own accord, let the bank force it for you.
4. Review Insurance Costs
Insurance for our homes and cars and everything else will amount to thousands of dollars per year. Not for one second would we suggest removing these protections and taking a risk. What we would recommend is a regular review at the end of your term. Don’t let it automatically renew. With all the comparison sites available today, it takes less than five minutes to punch in your information and see if you can get a better deal elsewhere.
If you can find a provider offering the same protection for a better price, make the switch and claw back those dollars.
5. Unused Bills
You’d be shocked at the number of people who pay for things like Netflix and unlimited texts yet never use them. This is where checking your bills come in handy. Pick up every non-essential bill and ask yourself whether this is something you really need. For most of us, we will always find little expenses that we no longer need.
For example, you may have needed unlimited data on your phone, yet you never download anything or spend anything longer than a few minutes checking the Internet on your phone. This is pure wastage and there’s no value in hanging onto services like this.
You can always get them back later on, if you want.
Prudency is the key to maintaining good financial health. Even if you follow these five tips now, the important thing is you keep following them six months down the line, twelve months down the line, and beyond. Without proper vigilance, it doesn’t take long before cracks start to appear in your financial armour and you’re haemorrhaging money all over again.