August 26, 2013

Smart Ways to Divide Your Income Every Week

Getting on top of your finances requires hard work and dedication, yet it is definitely achievable if you know where to begin.  Getting started is often the hardest part, and this comes down to setting yourself good financial goals and prioritising your budget. To help you establish a solid financial foundation, here are some tips on the smartest ways to divide your income every week.

Begin with Budgeting

The best place to start when you’re looking to maximise your finances is to assess your budget.  A good budget provides the structure around which you can organise your savings strategy.  Having a clear and concise budget means that you will know exactly where your money is going, and will help you to start thinking of new ways to divide your income.

Deal with Debt

Often, debt is the biggest financial concern that people face in their personal financial situations.  If you’re worried by your levels of debt, or simply want to pay off your loans and cards sooner, it’s a good idea to prioritise debt reduction.  This means you will be focusing most of your available income onto paying off debt, which in turn reduces your interest and ultimately gives you peace of mind financially.  Work on paying off your highest interest loans first for the most effective and efficient way to maximise your payments.

Everyday Expenses

After debt, it’s the everyday expenses that you should consider when deciding on how to divide your weekly income. Thanks to your great budget, you will now know how much you should put aside for expenses such as fuel, groceries, rent and other routine costs. This will allow you to correctly divide your income based on your general expenses every week.

Know Your Bills

Now that debt and everyday expenses are taken care of, you should start looking at directing some of your weekly income into a dedicated account for paying bills. Spend some time working out when your bills are due, and how much they tend to be then incorporate this into your budgeting strategy. By systematically setting aside some money every week, you will always be prepared for your next bill.

Boost your Savings

To get the best out of your savings, make sure you put aside some of your weekly income into a separate high interest savings account.  It doesn’t have to be very much, but even the smallest contribution every week will soon start to grow and become a solid base of savings.  By staying focused and sticking to your budget plan, you can truly maximise your weekly income, and start enjoying the feeling of being financially secure and stable.

These are all great ways to get started on building a solid financial plan for your future. For more information, tips, and informative blogs and get even more advice on consolidating your finances. Remember that the sooner you start, the sooner you can enjoy the rewards of smarter saving so take action today!

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