Is your spending pattern driving your credit score in Australia to its lowest point? Here are some tips to help you save more, spend less and earn more in the process.
Accept the importance of making a budget and set spending priorities
Knowing exactly how much and where you will spend your money each month will make the whole concept of saving and spending much clearer. Budgeting may sound quite hard, but in the end, you’ll realise that it was worth all the calculating and plan making. You get to track all of the things you spend your money on, which makes controlling your expenses much easier. You wouldn’t have to go worrying about your money when you’re at work, since you’re already confident that they all have their special places allotted within your financial plan. You might even find that what you budgeted was more than the exact amount you need, thus, extra money and more savings.
Budgeting also saves you time. Instead of going to different places to collect your documents regarding your financial transactions, you already have all of them listed down and printed out within your grasp. Budgeting really doesn’t have much flaw on it. It helps reduce stress, and makes life easier. All it takes is a pen, paper, and a whole lot of calculating.
Create a budget worksheet or use a budget planner tool
Now, as mentioned before, budgeting is quite hard, but with the right guide and planning, setting you spending priorities, you’ll get to it quickly and easily. The first thing you have to do is pick up a pen and paper, or your phone to use a budget planner. If you don’t want to lose the paper, you could use a notebook or a journal. Start thinking. Think about your financial status. How much income do you earn? If you don’t know exactly how to identify yourself as, past transactions or documents might help you. How you spend your money periodically also helps. Even the debts you owe and have paid will. Upon doing this, you’ll know exactly how you’re doing financially.
This is the time you’ll start the planning. Planning ahead of time will give you a feeling of assurance that will help you reduce the stress that everyone gets when it comes to spending priorities. Once you are aware of how much money you are earning, start by making a list of all your necessary expenses.This includes the bills you have to pay. Now calculate how much your monthly expenses add up to, and assign a specific amount from your monthly earnings to paying off these bills.
Needs and Wants
After that, allot a small portion of your money for savings. You’ll never know where you’ll need them for when the time comes. Now, flip to the next page and mark it as “WANTS”. Having a budget doesn’t mean that you won’t get to get what you want. You could grab a little money from your savings or the extra money from your budget and then buy the things that you want. But having the chance to get what you want doesn’t mean neglecting your NEEDS. They should always be put first.
Aside from this, you need to put into mind that you need to use the right guide. Your journal should include all the little details needed for budgeting- How to paying your debts, track your expenses, and then the periodic budget. This makes budgeting and everything else much easier. In saying so there are also online tools to help you keep track of your budget. Money Smart’s Financial Guide to Budgeting provide a free tool for inputting your expenses.
Clean your credit
Request for a copy of your credit report to check if the information contained therein are accurate. A poor credit score is due to the negative items on your credit file. If upon requesting your credit report, you noticed that there are accounting errors, or wrong information submitted by collection agencies, creditors and credit bureaus, it is time to repair your credit. Genuine errors can be removed, after filing proper disputes and attaching evidences to the contrary. You can also use DIY Clean Credit Repair Kit to request for the removal of erroneous entries.
There are easy to follow instructions and list of the right contacts that will help you take down items which shouldn’t be in your credit file in the first place. Learn more about our DIY Clean Credit repair and boost your credit score Australia by making an enquiry today!