High debts. Continued expenses. Limited income. An unpredictable future for our economy. Households everywhere are having to contend with dynamics like these. Try as they might, managing bills every month is turning into a depressive exercise that doesn’t get you anywhere. Don’t give up just yet though. For people looking to get out of debt and regain control over their finances, it starts with controlling your bills.
Here is a detailed guide on how to manage bills in your household:
1. Create A Budget
Creating a budget is one of the best ways to manage bills in your home. Know what’s coming in. Know what’s going out. Create a realistic budget you can stick with. Examine ways to lower the expenses you pay, i.e. paying less for groceries through sales shopping and coupons, downgrading your cable and internet package, etc.
Your budget should include all the debts that you owe, from credit card statements to any outstanding payday loans in your account. Consider ways to increase income, i.e. picking up a second job, starting a side business, etc. A budget should be re-examined every month. Stick to it. Budgeting works.
2. Know Every Bill
Write down all your monthly bills. Include an estimated cost, due date, and list them in order of importance. Avoid late fees and pay every bill on time. Bills can only be adjusted so far. They’re necessities. If you have a ‘fast food budget’, for example, this can be minimized or even eliminated. Bills can’t. They need to get paid.
3. Connect With A Payday Lender
Payday loans are a simple way to get instant money to pay bills. They rely on income and not credit, are easy to qualify for, and can get you money within 24 hours when you need it most.
Relying on payday loans every month probably isn’t the best idea. In a crunch, it will avoid you having to go to your bank, pay it on your credit card, or borrow money from family to manage your bills. You’re taking responsibility for your own expenses when
using payday loans to manage your debt.
4. Cut Down Your Rent
Your biggest – and most necessary – expense on a monthly basis is your rent or mortgage payment. A mortgage is a lot more difficult to get out of than rent. Regardless, moving and lowering what you pay monthly just for a roof over your head is a smart move.
If you’re really in debt, you may think about moving back in with your parents temporarily. Even just a few months can save enough money to control your finances, pay down debt, and get you back on your feet.
5. Don’t Put It On Your Credit Card
Dig yourself out of a hole by eliminating high-interest debt. Avoid going back there by not putting your monthly bills on a credit card. If you budget correctly, you shouldn’t need to. A credit card’s only going to have a negative effect. If it’s not this month, it will be next month.
Credit card debt is the most common form of consumer debt and that’s because many of us live beyond our means. Monthly
financial management has got to address the desire to pull from credit.
6. Start A Savings Account
Every paycheque, make a commitment to yourself to withdraw a little bit of money and put it towards a savings account. Even if it’s only $20, at the end of a year, you would have saved roughly $520 if you’re paying it off every paycheque.
This savings account will give you some cushion in case you encounter a month where there’s financial hardship. This way, you won’t have to borrow during difficult times.
7. Stop Unnecessary Spending
We all have spending triggers. They tempt us and then, we spend. Even if we don’t have the money to spend, we do it anyway because the result makes us feel better. For a lot of us, it’s restaurants, going out, and fast food.
For others, unnecessary spending could be tied to a favourite hobby. Take a look at your bank statement. See where you’ve spent money that could have otherwise been put towards your bills. Be honest.
8. Debt Consolidation
Unpaid credit cards and loans can amount to extremely high interest rates. They can grow so extreme that it becomes impossible to catch up on your limited income. Talk to your bank or another lender. Apply for a debt consolidation loan.
This way, you pay off all your high-interest debt and the amount you owe is consolidated under a single amount with a more favorable interest rate. With lower interest rates, you instantly end up
saving money month-to-month.
9. Manage Your Health
You’re going to be making a lot of sacrifices in learning a different way to manage your monthly bills. Your health shouldn’t be one of them. Ensure you’re getting enough sleep, eating right, and minimizing stress.
By investing in yourself and getting the rest, nutrition, and mindfulness you need, you will feel infinitely better throughout the process of juggling your finances. It doesn’t take a lot to turn your finances around. Just time, budgeting, and will.
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