Time to reduce debt? Set up a plan that works for you. Here are some examples of how you can better plan your finances.
First, find out where the money usually goes. Calculate the difference between your fixed expenses, such as housing and repayments, as well as your income such as salary, pension and allowance. Chart your reasonable flexible expenses, such as mobile, transport and food, and what you consider to be completely optional costs, such as spa visits, pizza or shopping.
Then rank the just flexible and optional expenses by how important they are to you. Don’t be influenced by advice that doesn’t apply to you. For example, you may have heard that you should lock your cell phone in a closet, but if you have a grandchild who just learned to talk or a job where you have to have 24-hour contact with colleagues, this is probably not for you . Then the mobile should certainly rank high on the ranking list.
This way you easily refrain from falling at the bottom of the ranking. Now start at the bottom of your ranking list and select as much as needed to handle your repayments by a reasonably good margin.
Straighten the line
Make a timeline and then set amounts as milestones. For example, you decide to have between $ 1,000 and $ 1,500 in your account a certain date after paying your expenses.
Your last milestone in the timeline becomes the goal. The goal may mean that you have paid off your loan altogether or that you have come a long way. For example, if you have a one-year loan, you may prefer to make a new plan every three months, or a long plan for the entire year, depending on what feels best to you.
And finally … the reward!
It is always nice when the loan is repaid. An added bonus is that if you take care of your repayments nicely, your credit rating will also be helped. Last but not least, there will now be a little extra left every month, it will feel a little thicker in the wallet. The surplus is the money that you spend or save as you want!
If the numbers do not go together
If you see that your spending is inevitably higher than your income over a longer period, it is time to seek help. If so, do not take more loans. Instead, turn to our customer service at all discretion or use our information on various agencies that offer customized guidance.