A Guide To Manage Your Finances

Money plays a crucial role in our lives. On one side, it acts as a tool for wealth creation for future needs and on the other, it serves as a transaction instrument for satisfying present needs.

While a lot of people spend most of their time and energy on earning more, it is essential to note that without learning the art of spending money well along with percipient saving and prudent investing, they may not be able to create a promising future for themselves and their families.

Everyone has the ability to manage their finances on their own. Financial planning allows individuals to meet life goals by wise management of money and finances. Learning to manage money wisely could be the first step towards the bigger goal. Taking the time to manage your money better can really pay off. It can help you stay on top of your bills and save a lot each year. The information and knowledge you need to make the right financial decisions is at your fingertips.

Here are some of the useful ways to manage your finances wisely:

  • Decide on your priorities: Most of the people’s budget revolves around three things- food, housing and transportation. After you budget for these expenses, which most probably account for between half to two-thirds of your take-home pay, and factor in any debt payments, decide how to prioritise savings, household expenses, professional expenses, and entertainment.
  • Create a financial calendar: If you don’t trust yourself to remember to pay your quarterly taxes or periodically pull a credit report, think about setting appointment reminders for these important money-to-dos in the same way that you would for an annual doctor’s visit or car tune-up.
  • Track your net worth: Your net worth-the difference between your assets and debt is the big picture number that can tell you where you stand financially. Keep an eye on it. It can help in keeping you apprised of the progress you are making toward your financial goals or warn you in case you are backsliding.
  • Set up a budget: The very first step to take control of your finances is by doing a budget. It will take a little, but is a great way to get a quick snapshot of the money that you have coming in and going out. Over half of UK households keep a regular budget. It gives them peace of mind about how much they are spending and makes them feel better about life in general. Setting up a budget means you are:
  • Less likely to end up in any debt
  • Less likely to get caught out by unexpected costs
  • More likely to have a good credit rating
  • More likely to be accepted for a mortgage or loan
  • Able to spot areas where you can make savings
  • Set specific financial goals: Use numbers and dates and not just words to describe what you want to accomplish with your money. How much do you want to be saved and by what date? How much debt do you want to pay off and when?

For more information, you can call on Santander Contact Number and get in touch with its team.

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