Making The Most Of Your Money

By Author: Bonny Kominek
Total Articles: 32
Comment this article

Even those of us with healthy finances need to think about what else we could be doing to make ourselves more financially secure in the current economic climate; it''s even more urgent if you''re not very good at managing your money. The financial crisis has shown that it pays to be prudent. Hopefully the following ideas will be able to help you get the most out of your money, whether you''re heading into the red or happily in the black:

Draw up a budget. It''s surprising how few people know exactly where their money goes and this is the first thing most financial planners advise you do. Draw up a list of what''s coming in and going out ? receipts and bank statements should tell you where your cash is being spent.

Do your outgoings exceed the money coming in? If so, the first thing to do is lessen your spending and start saving otherwise you''ll be getting into debt. Start thinking about ways to save money and increase the amount coming in.

If your budgeting shows that you''re in the black at the end of each month, then think about where this money should go ? do you want to save? Put it towards other debts?

It''s ...
... generally agreed if you do have debts the extra money should go towards these rather than savings first ? the high interest rates charged on most borrowing mean you''ll owe more in interest on your debt than you''ll make from interest on your savings.

Have a strategy when paying off debt. Firstly see if you can make it any smaller. Sometimes this can be done by transferring the debt to another credit card or loan which charging less interest. Many credit cards have interest-free periods that savvy consumers should take advantage of. Pay off the debt with the highest interest first.

However, do bear in mind that every occasion you apply for a card or loan it shows on your credit record - doing this too many times as this can have an adverse impact on your score. Also, quicker repayment means less money spent on interest so try to pay the debt as quickly as you can reasonably manage.

If you don''t have any debt, consider opening a savings account to store your money. Be sure to search around for the best rates of interest as these vary widely ? some banks offer fixed rates of interest whilst other track the Bank of England''s base rate which can fluctuate.

You''ll be sure to see your money grow if you bear these tips in mind. Bonny Kominek is the author of this article. Alliance