7 ways to manage your personal finances

In order to enjoy a life of freedom and independence, it is vital that you manage your finances wisely. Otherwise, your lifestyle will be limited, and you will be forced to depend on others for support. If you are determined to make it on your own and to secure a bright future for yourself, you will need to read on. Below are seven ways that you can manage your personal finances.

Take control of your income

Instead of relying on somebody else for your income, why not take matters into your own hands? There are plenty of fantastic ways for you to create your own career path and to enjoy the flexibility that comes with being self-employed. For instance, you should look into direct sales companies. This is a brilliant opportunity for you to run a home business and earn your income through direct sales. What better way for you to take control of your earnings and to achieve your full potential? Why stay in a dead-end job where you are underappreciated, when you can flourish independently?

Set up a savings account

If you don’t already have your own savings account, you should definitely think about setting one up. This is the best way for you to stay on top of your personal finances. It will also help you to separate your funds and protect you from going into your overdraft. Ideally, you should have more than one savings account at a time. Perhaps one could be for your holiday plans, one could be for your property plans, and one could be for accidents and emergencies. You should also consider setting up a standing order so that your monthly earnings are divided sensibly amongst your accounts. This will ensure that you are always saving and that you are never tempted to spend money that would be better placed elsewhere.

Place your trust in a financial advisor

Even if you have a strong head for numbers, you could still benefit hugely from hiring an accountant. The right financial advisor will help you to get the most out of your money. They will help you to manage your taxes, avoid expensive fines, and improve the state of your investment portfolio. They will also force you to confront your spending habits head-on. While you might be able to justify certain purchase to yourself or your loved ones, an accountant will be able to offer you an objective point of view. This could help you to build up an enormous amount of money, as even the smallest of savings will begin to accumulate.

Enjoy an eco-friendly lifestyle

Another option is to save money while saving the environment. You could cut down on your use of fuel by driving more economically or making the most of public transport or car shares. You could even set up your own lift share and share the cost of gas and maintenance. You could also invest in household insulation and install solar panels on your property. Although environmentally friendly measures are likely to cost you in the short term, when it comes to the bigger picture, they could save you an impressive amount of money. For instance, you could sell the energy from your solar panels back to the government. You could also lower the cost of your monthly bills, and you could even grow your own produce. There really aren’t any downsides to going green and saving a pretty penny.

Group together with your loved ones

You could also save money by grouping together with your loved ones. This is a fantastic approach to arranging vacations, ordering products in bulk, and qualifying for money saving deals. Operating as a large group could also help you to improve your negotiating power, as businesses will have more of an incentive to secure your loyalty. Another option is to set up a swap shop to share with your friends and family. This is the perfect opportunity for you to exchange books, DVDs, CDs, clothes, and other useful items. You could even buy one expensive item and share it between you. For instance, you could purchase a portable projector for your home movies. Then, you could send it round on a weekly or monthly basis. This will help you to keep the costs low and to feel more confident in your purchases. Just make sure that you group together with the right people, as you don’t want to end up in a stressful argument.

Set yourself financial targets

If you are determined to hold yourself accountable, you should think about setting yourself plenty of targets. Try to strike the right balance between ambition and achievability. You should work out what you are spending each week and try to cut your costs one step at a time. You should constantly be on the lookout for ways that you can protect your money and secure better deals. You could even compete against your friends and family to see who can make the biggest savings. You could also use treats as a source of motivation. Perhaps you could create a budget for each week or month. If you are able to come in under budget, you could split your savings into two. Then, you can spend half on a treat and put half into your bank account.

Do it yourself

You should also try to save money by taking matters into your own hands. Say you are struggling with a problem around the house. Instead of calling out a professional and paying a service charge, why not step up to the plate? You could also have a go at preparing your own meals, decorating your property, and getting crafty to create home-made gifts. You never know, you might even start to enjoy yourself! Not only will DIY help you to save money, it will also allow you to enjoy an increased sense of independence. When the chips are down, it is vital that you are able to manage the situation effectively.

Thanks to Lauren Greger