Managing your money is crucial to your financial health. Take proactive steps to handle banking, money and accounting issues. This way, you will keep track of your spending and save money.
1) Keep all paperwork
Keep accurate records of all your financial transactions. Have a separate file for income and another one for expenses. Once you know where the money goes, you can take steps to cut expenses.
2) Keep it Simple
Your financial records do not have to be complicated. A simple spreadsheet will do. Just keep the records simple and you will achieve great results with it.
3) Keep Multiple Accounts It is not prudent to have only one account. You should have at least to bank accounts. One account should be your salary account while the other one is your savings account. This enables you plan your income and save money.
4) Payment Dates
You should harmonize your direct debit dates to ensure there are no gaps between the payday and the payment due dates. This way, you pay your bills conveniently and have a healthy liquidity position all the time.
5) Clear Debts First
Pay off your debts as soon as you can because servicing a loan takes a large chunk of your money. Avoid payday loans and take bank loans only when you need them.
6) Audit Your Accounts
Take out time to audit your personal accounts every week. This is one way to spot unnecessary expenses and take corrective measures.
7) Keep to the Agreements
Keep agreements with your banker and your credit card companies. Avoid late payments and always play by the rules. This way, you will save money on bank charges and penalty charges.
8 ) Understand Online Benefits
Most banks offer internet banking services these days. Take advantage of the online option and manage your accounts from the convenience of your home or office.
9) Pay Attention
Review your transactions regularly and look out for errors and omissions. Report any suspicious looking transaction to your banker and never take things for granted.
10) Read the T&Cs
Finally, you should read all the terms and conditions and try to understand everything there. Knowledge is power so you should get all the information you need so that you will enjoy a beneficial relationship with your bank.