Now that the long weekend is over, you may be feeling the financial impact of unintentionally overspending during a leisurely break.
While you may be stressed about how you can recover from spending too much money, the good news is that it is never too late to get back on track.
According to African Bank, you have the right to make your own decisions about money, but following these five tips could make all the difference in getting you back on track.
Five tips to help steer you towards better financial health:
1. Ask for help
If you are unsure where to start, ask a trusted friend, a family member, or even a financial adviser about how you can start getting your finances back on track.
You can also make use of the many online money management tools. You should also check with your bank to see if they have useful hints and tips on their websites you can refer to.
2. Keep a record
It is difficult to manage your money without keeping records to help track income and spending. These records should include receipts, payments, and financial statements.
You should set up a system for dealing with accounts and statements, and make sure you have a different system for sorting and organising receipts and paperwork.
Identity fraud is on the rise, so you should tear up or shred unwanted financial correspondence instead of just throwing it in the trash.
3. Set goals
According to African Bank, small, achievable goals are essential, as you can’t always change your money habits overnight.
Savings, debt, and retirement planning should be factored into your financial goals.
4. Plan for an emergency
A number of financial experts recommend that you have at least three to six months’ worth of living expenses in a high-interest-bearing savings or investment account.
This financial nest egg can help you avoid credit card debt when an emergency crops up.
If that is just too much, then start with a smaller amount that you can increase every month.
5. Don’t feel discouraged
It takes a little while for a new habit to become entrenched, but once you are able to pay your bills on time and save money too, you will start to appreciate the benefits of sound money management.
It is important that you stay focused and reward yourself when you reach the different stages of your end goal.
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