So here you are in 2017 and yet again you’re broke! Despite the best of intentions many of us overspent at Christmas and the holiday season, and are just beginning to count the cost. January always seems such a long month – particularly if you were paid earlier than usual in December. There is simply too much month at the end of the money!
Most of us are having to juggle things round to make it to the end of the month, and some may need the help of an emergency cash loan just to tide them over. But let’s take a look a little further ahead at how you might be able to get your finances back into recovery mode – and keep them that way! Here are our Top Tips for Financial Recovery:
1. Make a list of all the money you owe
Christmas may have left you with overdrafts and credit card bills, so include all that – plus any existing loans or debts. Don’t forget to include anything you have bought on credit but is not yet showing up on your statements. You need an overall figure for the amount of debt you have so that you know the size of the problem.
2. Create a realistic monthly budget
Make a list of everything you spend each month. Start with all regular payments from your bank- mortgage/rent, household bills, subscriptions etc then add on essential spending such as food and transport to work. Then add on realistic amounts for other spending which you currently do, even if it is not strictly essential – for example, entertainment, clothes, hairdresser etc. This non-essential spending needs to be carefully monitored during the month – most of us spend a lot more than we think! – and could be cut down if you are not managing to pay off your debts.
3. Make a list of the money you have
Look at the money you have available. Is your monthly income enough to cover everything in the budget you just created and also to start paying off some of your debt? If there is a shortfall you need to take action!
4. Action plan!
Your first priority is to get to the stage where you can live within your means. If you do not have enough money to get by each month then you simply need to either raise more money or reduce your spending. It’s hard but you may need to start cutting out some or all of the non-essential expenditure for a while just to get back on an even keel again. Either that or try to bring in extra income by take on a little extra work or perhaps trying to sell some of your unwanted goods on sites such as eBay or Music Magpie.
You also need to keep tackling that debt and not letting it spiral out of control. One strategy might be to take out an emergency cash loan to pay off some of the most urgent demands. It can be less stressful and confusing to have one affordable loan to manage rather than trying to keep up with several different payments at different times of the month.
5. Start saving
When trying to juggle finances from month to month, the last thing on many of our minds is saving! But it is really important to start building up some savings, however small. Otherwise this time next year you are likely to be in an even worse position than you are now. Start planning ahead now to next Christmas, and to any other plans you may have that will involve money.
The best thing to do is to commit to saving a small amount of money each month. Make it part of the budget we looked at above and treat it as a bill just like any other. Put the money into a separate savings account that is not too easy to access: this way you can’t just dip into it any time, but if you ever really need emergency cash you will be able to get to it.
We hope that 2017 is the year when you manage to turn your finances round and are able to move forward in a positive direction. If you do need an emergency cash loan as part of this then Loans 2 Go would be happy to help. So why not get in touch and let us kick start you on the road to financial recovery!
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