When was the last time you looked at your household finances? You’re either someone that audits your finances frequently or someone who doesn’t pay much attention. If you’re the latter, you could be overpaying on your normal household expenses and could benefit from saving.
If you want to manage your finances and feel in control of your life, you need to track your spending. It’s too easy to spend in the stores and online without thinking about the bank balance, but when it comes to the end of the month, you might be in for a bit of a shock.
Whether you use an app, a notebook, or your head, tracking your spending is the best way to stay in control of your finances. Needless to say, this tracking behavior works in the context of a larger household budget that you will have to create on your computer and check regularly.
Speaking of budgets, you need one as a framework to stay in control of your finances. Most individuals and companies have a monthly budget because it shows exactly how much you have, leaving the account for necessities such as energy bills, mortgages, and other expenses.
Creating a monthly budget is daily straightforward; all you have to do is take a look at your bank statement and note down all of the things you must pay for if you want to maintain your present standard of living. This process also flags up areas where you can make some savings.
Some things in your monthly budget must be paid for to keep the light on and the water running. These things include the energy bills, the heating costs, the internet, and various costs associated with car ownership. Cars can cost a lot of money each year with fuel and insurance.
If you find you are overpaying on any of these items, don’t hesitate to switch providers; nowadays, most providers offer excellent deals for new customers so you can tighten up your monthly budget. It’s also a good idea to search the internet for better liability insurance.
In the past, the family’s financial manager used paper files and notebooks to stay in control of the household expenses and track spending. Nowadays, people have a choice, you could use a paper notebook or you could use a smartphone app that’s convenient and intelligent.
Smartphone apps, such as YNAB, are perfect for controlling your finances on the go; what’s more, many of these apps can be linked directly to your bank account and send you messages and notifications about your spending along with handy hints to help you out – the perfect tool.
That said, you don’t have to be a wiz with a smartphone to keep track of your finances; if you’re old school, then why not buy a convenient notebook that fits in your pocket? Notebooks might be low-tech, but they never run out of battery and help you control your life with brain effort.