2016 has barely started and many people are already in debt. We will agree that with the crisis that is shaking the country – high interest rates, rising unemployment rates, inflation – it is much more difficult to get out of debt.
However, you can’t live on the edge forever. With organization it is possible to get out of the red and gain control over your financial life. Those people who are in the habit of planning their spending, with discipline, can achieve savings of up to 30% in their budget.
To show you how to organize your debts in 2016, we have separated six tips that can help you compose your planning and your posture to get over debts. Check-out:
Analyze and plan your spending: see your budget
First of all, it is important to think and plan. It is not enough to simply record income and expenses in a spreadsheet, it is necessary to look at the values and analyze them as a whole. In this situation you will be able to identify if all your fixed expenses are necessary or even if you are paying for services that you do not use, such as the gym fee that you go to once a month or the landline that you do not even use but pay a monthly fee.
You can reduce some values, just commit
This tip concerns all the little things you can do to reduce consumption. For example, do not take long baths, forget the bedroom light on and do not sleep with the TV on. There are several other services that you can evaluate and that, if used better, can make a significant difference in your budget.
Do not create more debt: avoid installments as far as the eye can see
Falling into the temptation to buy that 52-inch plasma television can be difficult if paid in 60 months. And change the car, then? Only 120 plots. Often all the parcels acquired, if added together, end up taking a good part of your budget. Allow yourself, when you have money left, to enter into an agreement to pay the remaining installments and have a financial advantage with it.
Do not enter revolving credit to pay expenses
Treat credit cards and overdrafts like debts, which is what they really are. There is no point in paying the minimum credit card or paying the bills with the overdraft limit, because next month these amounts will be charged with interest – and high interest. This type of credit should only be used in an emergency and so you run the risk of becoming more involved and not organizing debts.
Swap expensive debts for cheaper ones
If you are inexpensive debt, such as overdraft and revolving credit card, it is worth taking out a loan at cheaper rates and paying off the expensive debts. The payroll loan is usually the one with the lowest interest rates, followed by personal credit.
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Learn to save: face it with the seriousness of a debt
Once you manage to balance your budget, you will have another challenge to face. Money may start to come in, and when it does, keep in mind the importance of saving. With this, you can save as if you had a debt, keeping a fixed amount per month, for example. The important thing is that you can build a reservation and redirect it to when you really need it. And speaking of savings, another way to save is to separate part of your 13th for expenses or even to save.
After presenting some tips on how to organize your budget, you will be able to start your financial planning and use strategies to balance your spending in 2016! Always remember to analyze your expenses, making revisions to your budget.
Did you like today’s tips? Leave a comment telling how you plan to organize your financial life in the new year!