Where to start, It can be difficult to know where to start when you want to improve your finances. A new year is always a good time to start a fresh one.
It may be that you have debts that you want to get control of or that you will have fulfilled as soon as possible. If you do not have debt, but your account is always empty or has overdrafts at the end of the month, it is also a good idea to better manage your finances.
Make an overview
It is first and foremost important that you create an overview of your finances. This means, among other things, your income, your expenses and any debt items.
Once you have created a complete overview of your finances, you can better put a budget. By setting a budget, you have a greater sense of how much money you need for spending, and what your disposable amount is.
Besides being relevant for you to get an overall overview of your finances here and now, so that you can make a budget, it is also recommended that you regularly check your account. That way, you always have an overview of how much money you have available and how much money you have spent.
If your own online bank cannot already do so, there are various apps that can show you what you are spending your money on. Many are surprised at what they actually spend their money on.
If you don’t want to use modern technology to monitor your consumption, you can always save your beans and write down where and how much you’ve spent.
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Find possible savings
Once you have made an overview of your finances, it is also relevant that you examine whether there are any items in your finances that you can save. It may be that there are several small items where you can save. Although you may only save a small amount each month, there can be a lot of money to save.
For example, you can Consider using all the mobile data that you actually pay for each month. If you do not use all your mobile data, you can investigate the possibility of putting your data usage down. It may also be that you can find a cheaper phone subscription elsewhere. If you do not use all your mobile data, you can investigate the possibility of putting your data usage down.
If you are a member of a gym, you can also consider whether you can save on membership. There are, for example, many places where you pay extra to train morning and evening or on team training.
So if you, for example, Having signed up all but only training on machines, you can consider changing your membership so you get a cheap subscription.
It may also be that you pay for an expensive TV package, but you almost never see TV. In addition, you can also think about how many streaming services you subscribe to and whether you are using them all.
Another place where you can save on costs can be electricity and heat, which is also a saving over a longer period.
If you can save a little on the smaller monthly expenses, it can also give you good savings in the long run. You can therefore review these expenses one at a time and assess whether you can do without or save on some of them.
Avoid unnecessary consumption
In order to get your finances under control, it is also relevant that you think through your consumption. For example, if you spend a lot of money on restaurant visits or clothes, so be sure to put your consumption down to what is needed and try to cut as much as possible.
You can also make a food budget, as it is typically an item where many spend too much money. By making a food plan and a shopping note and making sure to stick to it, you more easily avoid buying unnecessary items in the form of impulse purchases.
Make an overview of your debts
When you have to manage your finances in the new year, it is also obvious that you get control of any debt.
Once you have an overview of your debts and hence how much money you owe and how many different lenders you have debt with, you should consider how to repay your debts as soon as possible.
If you have any doubts about your debts, you can log in to SKAT’s website with your NemID and create an overview. However, you must be aware that the numbers are not always 100% updated. You can also log in to your online bank and see who you are transferring money to every month.
Also read How to find your debt items
Put your loans together
If you have multiple loans from different creditors, it can often be worth collecting one place in the form of a collateral loan. By pooling all your loans somewhere, you will typically be able to get a lower interest rate and thus a cheaper loan in the long run. In addition, it is typically easier to just pay off on one loan. Collect them in one place