IF YOU ask people what they want to achieve this year, many will tell you they want to manage their money better.
Unfortunately, bad debts and credit records will stand in the way of achieving your financial goals.
Iman Latief, from Irvine Partners, shared some simple steps to help SunMoney readers improve their finances this year.
Stick to a budget
It’s the most common piece of financial advice you are likely to hear in your life, but budgets really do work.
Knowing how much you are spending on everything is important when making cuts, so try to write down everything you spend money on in one month, and then design your budget around that.
Seek help
There are loads of options out there if you are intimidated by how you can manage your finances. It isn’t always an easy task – addressing money issues can be emotional for many people. Ask your bank about their financial advisers. The cost of financial advice is included in the fees for most bank accounts, so it won’t cost you a cent more.
“Before you make an appointment, write a list with all the questions you want to ask the adviser. Make an appointment and think about what you need help with ahead of time. Go prepared with questions, on everything from how much you should be spending on food, to how to save effectively,” she said.
Online personal finance courses, such as Educate24’s Basics of Personal Budgeting, are another option.
Rent to own
It’s easy to promise yourself that you won’t make any big purchases. But sticking to that can be difficult, and sometimes even impossible.
“Renting is a financially savvy option, as you don’t have to commit to debt. Many retailers offer rent-to-own schemes that allow you to pay a fixed amount each month on anything from couches and gaming consoles to kitchen appliances and cellphones.”
Renting-to-own is another way to buy what you need without the crippling debt.
Set goals and review them
You’re probably not going to save half your salary or wipe out your debt in one year, but you might be able to get rid of half your debt, reduce your credit card spending or set up a savings account for emergencies.
