Managing money: Home, business, and personal accounting
Look after the pennies and the pounds will look after themselves. Whether you are managing your personal, home, or business finances you need to monitor every small incoming and outgoing closely and find opportunities to save and invest. Here are some basic steps everyone should take to get control of their balance sheet, save money, and find ways to invest in their future.
Reduce interest payments
Everyone has some debt. People use credit facilities like credit cards and loans to help to cover the costs of expensive items and home improvements. Over time, the amount of interest you pay each month can start to add up, draining your finances and reducing your regular disposable income. By consolidating these financial products into one payment, you can simplify your debt repayments and reduce the amount you spend on interest.
With the help of Sunny, you can get short-term loans that can help you to rearrange your debt repayments and reduce your monthly interest charges. Short-term loans at Sunny can be approved on the same day as you apply. Sunny loans are available over three to 36 months, helping you consolidate many of your regular debit repayments into one simple loan at a set interest rate. This can help you take control of your finances and control your outgoings.
Forecast and plan
Spreadsheets are your best financial friend. You can use them to plan and forecast your income and outgoings so you stay one step ahead of your bills. Regular outgoings are fairly simple to plan for, but you need to include all the occasional costs too and get in good shape for expenses like Christmas. With the right financial planning, you can start saving for the future too.
Set aside some time to sit down and go through all your bills and your income. Print out your most recent bank statements, or have them handy on your phone. Make a list of your regular outgoings, including household bills, debt repayments, subscriptions, and even your food costs. If you start planning you will see opportunities for savings that you can put away for a rainy day.
Be ruthless with expenses
Whether you are planning your personal finances, and household bills, or you are getting to grips with your business’s balance sheet, you need to get ruthless with your regular expenses. If you sit down and take a long hard look at your regular outgoings, you may be surprised at how much you are paying every month for products and services you do not make the most of. Cutting these costs will put money back into your pocket.
For personal and household finances there will probably be more items you can cull from your list, and more opportunities to save money. It can be more difficult to trim expenses from your business finances. When you are going through your business accounts, look for opportunities to switch suppliers for goods and services you use regularly. Just saving a pound here and there can quickly add up to a sizeable amount, pushing up your profit margins.
Switch for savings
When you assess your finances you need to assess who provides your financial services. Are you getting a good deal? Many people already know how switching energy providers can save money. Changing who supplies your personal and business services can also yield big savings. Do not forget to take a look at your bank accounts too. Are you getting value for money from your bank? Are there better offers out there?
The personal banking sector is hugely competitive, many banks offer high-value incentives to switch to them. Even in business banking, there are incentives and savings to be found. Efficiency saves money in business. Does your bank process your payments quickly? Is your business paying more in service charges than it should? Take a close look at your banking services and see what else is on the market.
Save and invest
It can be tempting to take the regular savings you make and spend them, but this is a mistake. You will find your financial future easier if you have some money squirrelled away to help you when you need it. Take your regular savings and invest them in a savings account, stocks, or invest in home improvement. Interest rates are slowly rising for the first time in a decade. There has never been a better time to save.
If you are a homeowner then you have some valuable investment opportunities available. Making improvements to your home is one of the best ways to save for the future. Spending smart on home improvements can give you a huge return on investment when you sell your home, often doubling your money. You also create equity in your house which you can release later through remortgaging or by using a home reversion plan.
By managing your money you are taking control of your future. Planning for the short term yields huge long-term benefits. Cut costs, invest wisely, and enjoy a financially stable life. Do not be intimidated by your finances.