Don’t get into trouble with your Finances – Act now
Completing a small balance sheet for your finances is easy enough for most but sticking to it might be harder for some than others. With the average male salary being £30,687 and the average female salary at £23,939 and the average household debt (not including mortgages) is £18,263 there sticking to your financial means is vital.
The average salary that I have stated above is way above what most people in the United Kingdom earn as this figure includes all the higher end salaries. Most people and I am one of them earn below the average salary, I get half of it. That means that my salary would not cover the average household debt if I were to owe that much.
Many people get into trouble with their finances and get further and further in debt as they as many will agree want the best. But, to get the best you sometimes need to go above your means and that means loans, credit cards, hire purchase and such. If you have a good credit rating then you get finance virtually thrown at you. But, unless you keep track of what you are spending and how much you owe each month you may become too engulfed in debt.
Making the balance sheet is a good idea, even if it is a basic one. Which companies you owe in one column and how much in the other totalling this altogether to give you an idea of how much spare cash you have a month. Doing this you have to remember about your household bills too. Many people think that they have the money but then they forget that they have other bills, such as their household ones, on top of any debt that they have on their credit cards, loans etc.
If you have created a balance sheet then trying to stick to it is hard. On pay day you will want to go out for a nice meal, a night out or even socialise. This would is fine if you are sure that you can afford the expenditure but if not then it would be better to save the money until later in the month. There is no point blowing all your money on the first day of the pay month and then struggling throughout the month.
If you make yourself a balance sheet and stick to it then you will start to see your debts decrease as the time passes. If you have any remaining unspent funds at the end of the month then you can either treat yourself or save the money as saving it could always help out further down the line.
Discussion
What do you think? Leave a comment. Alternatively, write a post on your own weblog; this website accepts trackbacks [trackback url].
Leave a Reply