How To Create a Budget and Get Your Finances Back In Order
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Even if you and your partner haven't travelled anywhere this summer, with all the activities, drinks and meals out, our budgets can easily take a hit.
Overspent this summer? You´re not alone. A 2015 survey conducted by consumer credit reporting agency Experian found that 68% of people overspend when on holiday. Additionally, 40% of people who participated in that survey said they accumulated credit card debt while on holiday, and 46% of people surveyed said they used their credit card to finance their holiday.
Assessing the Damage
As we´re approaching the end of summer, now is a good time to get your finances back in order. The first thing you need to do is look at your financial situation and confront any debts. Look at your bank statement online to make sure you see all the recent transactions and current balance to see just how much money you owe.
Next, it´s time to write up a budget by first making a list of your monthly expenses. Based on your current budget and living expenses, how much can money can you allocate to repaying your debts and how long will it take to have your debts paid off? You will then need to look at what expenses you can reduce or remove entirely. With a few adjustments and a little creativity, you can repay your debts while still enjoying your life.
Identify ways you and your partner can cut down on expenses. For example, can you both bring lunch to work instead of buying lunch every day? Can you use public transport instead of running a car? Can you ride or walk to work instead of buying a monthly travel card? Can you get rid of your monthly gym membership and work out at home or in a park instead?
Once you´ve identified ways you can reduce or remove expenses, you should be able to see much money you can you save. If you allocated the money you could save to repaying your debts, how long will it take you to be debt free?
Taking Care of Debt
If you’ve worked out your budget and it looks like your debts may impact you more than a couple of months, now might be a good time to explore an additional source of income.
Do you have a spare room that you can rent out on Airbnb? Can you pick up a part-time job for a couple of months? Does your workplace offer overtime for additional hours worked? Think about ways you can earn extra money to tackle your debts.
In The Short-Term
If your summer spending has left in a situation where you need access to money to cover immediate needs such as living expenses or to seize an opportunity, but it´s a couple of weeks before you get your salary, then a Ferratum Money short-term loan can be just the thing.
Apply for a Ferratum Money online loan through our easy-to-use online portal platform and receive an approval within minutes. Once your loan has been approved, the money is then disbursed into your bank account within 2 hours which means you can take control of any pressing financial matter right away.
Here´s to getting your finances back in order.
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|Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk. Representative example: APR 1270% if borrowing £400 for 4 months. Interest rate: 292% p.a. (fixed). Total amount repayable: £665.48 by four instalments of £166.37. Maximum representative APR: 1604% if full loan repaid after 7 days.|