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Your Money > Budgeting Articles > The How To...
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By Serena Cowdy
Getting out of financial difficulty can be a hugely daunting prospect -- particularly if you're not sure where to start. Even if most aspects of your finances are under control, it's very easy to let one or two slip through the net, because they get forgotten or you don't get round to them. Now, I know some people can train their brains to remember all the things they have to do every day. For me, that would be like trying to keep water in a sieve, so I'm very into good old pen-and-paper lists. Here, I've created a personal finance checklist that works well for me, and should help you get organised as well. I've included sections on what you should check up on every day, week, month and year. Daily Check your bank balance: You can now do this from home using internet or phone banking. It means that any fraud committed on your account doesn't have a chance to get completely out of control, and also helps you keep track of your spending. Check the cash in your wallet: This sounds pretty straightforward, but I've lost count of the number of times I've tried to buy something tiny from a newsagent, only to realise I've run out of cash and I'm nowhere near an ATM. If you're dealing with debt: Try to note down all your expenses every day as well. It's a bit time-consuming, but it will give you a much clearer idea of where your money's going and how you can cut back. Weekly Budgeting: Spending twenty minutes each week working out your budget really could make you richer. If you're in debt, try and think of one more way you could whittle down your weekly expenditure. For example, if you find you're spending a lot on meat, consider investing in a slow cooker and buying cheaper cuts. Talk it over: It's good to talk about money - especially if you have joint financial responsibilities. Once a week, make a bit of time to sit down with your partner and take stock of where you both are. Do you know how much is in the joint account? Are there any big spend' items you need? Monthly Review your debts: Make sure you're still throwing money at the worst' one (snowballing). And make sure you're still paying your debts off as quickly as possible. Do you have extra money this month? Pay it towards the debt charging the most interest. Check out the top credit cards: New credit cards are launched all the time, so every month or so, it's worth checking what's out there. If you can't afford to pay your balance off in full, make sure you switch to the best 0% on balance transfers' card you can get. And if you always pay off your bill in full, check out the cashback and reward credit cards on offer. Update your Statement Of Affairs (SOA): You can put together your personal SOA using this calculator. Updating it every month will let you see exactly where you stand, and will also provide a welcome boost when you see that your debts really are getting smaller! Blitz your paperwork: At the end of every month, you'll have new bank statements, phone bills and credit card statements to deal with. Make sure everything's filed away (or shredded if it's no longer needed) so the pile doesn't get out of control. Yearly Who provides what: You can save hundreds of pounds every year by switching the companies that provide your gas and electricity, as well as telephone, internet and mobile phone. Some people review their providers even more frequently, but it's definitely worth giving your household bills a yearly health check to see where you could be saving money. Contact details: Check that all the financial contact info you have is still up-to-date, legible and easily accessible. This could be anything from credit card cancellation phone numbers to passwords, account numbers and PIN codes. You never know when you might need them in a hurry. The best savings rate: Make sure your savings are still in a market-leading account - and if not, switch to one that earns you more interest. Is the first £3,600 of your savings going into a tax-free cash ISA (Individual Savings Account) each year? The best current account: Check that you've got the current account that works best for you - you don't need to stay with the bank of your childhood! Perhaps you want an account with a better interest rate, or a larger interest-free overdraft limit. Review your pension arrangements: If you've changed jobs in the last year, make sure you talk to a financial advisor about what to do with your old pension plan. Also check your pension contributions still reflect the amount you can afford to pay, and that they keep up with the rate of inflation. And if you have a self-invested personal pension (SIPP), make sure you're still taking advantage of the best investment opportunities around. Insurance: Whether it be car or home insurance, don't make the mistake of automatically renewing with the same insurer year after year. You may well get a far better deal as a new customer, so make sure you shop around when your policy comes to an end. Children: It's a good idea to review your children's financial arrangements on a yearly basis too (and I don't just mean their pocket money). Are your children's savings still in the best savings account? Are you making the most of Child Trust Funds? The tax man: Try not to leave it to the last minute this year (I was recently guilty of last-minute form filling panic). Check that your records are complete and in order well before the Tax Return deadline. As and when Finally, if you haven't already done the following, get on the case! Consider re-mortgaging: Is your mortgage interest rate still competitive? Don't stay languishing on your lender's horrendously high SVR! Make a will: This will save your loved ones huge amounts of confusion and heartache if the worst happens. It's also important to keep it up-to-date to reflect new relationships and assets. Of course, you'll probably want to add your own stuff to this list. You might want to print it off and stick it somewhere prominent, like on the fridge or in the wardrobe. Alternatively, you could cut and paste it into a Word document on the computer, so you can keep it updated more easily. Whatever you choose, I hope it provides one more weapon in the battle to get on top of your finances - so that they don't get on top of you! Useful links:
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