4 Secrets To Gain Control Of Your Personal Finances Without A Budget

by Sharon

Are your personal finances out of control? Unsure where all of your money is going?

This can be stressful can't it? Wouldn't it be great to dramatically reduce the stress associated with personal finance issues?

Well, you could create a budget, but I've found that most people don't stick to them anyway.

However, you could follow these 4 secrets to wrestle control back of your financial position and hopefully you'll avoid the necessity of creating one of those dreaded budget thingys.

  1. Find where your money is going.

    Keep track of every bit of money you spend for a month. EVERY LITTLE BIT including coffees, nibblies etc. You will be surprised at how much is frittered away.

  2. Use your credit card wisely.

    Make sure you pay off your entire credit card debt each month. If you don't you will create a black whole which will just suck your money straight out of your pocket like one gigantic vacuum cleaner.

    I use credit to pay for 99% of things I buy because of frequent flyer advantages but I make sure I NEVER pay the banks any interest or late payments.

    If you don't follow this sensible advice you'll have to get on a budget quick smart to pay off interest and late payments.

  3. Keep your cheque book balanced.

    I think cheque books are going to go be as extinct as dinosaurs within a few
    years. Nevertheless, make sure they balance. Remember to take into account ATM and internet withdrawals too.

    Anyway, this cumbersome chore will be automatically taken care of if you do what I said in point number one.

    If your cheque book balance is the same as the account balance at the end of the month give yourself a big pat on the back.

  4. Reduce expenses.

    Once you actually realise all the little bits and pieces you waste money on by keeping track of every little expense for a month (see 1) you will become aware of where you can make substantial savings because you'll realise a lot of these expenses are just a total waste of money.

    It's all about awareness.

How would you like a bonus tip?

OK here it is.

At least every 3 months figure out your total net worth. Superannuation, shares, property, money in the bank and other assets you might have. I wouldn't count your car or clothes because they're not investments.

What you'll find is that over time this figure will slowly grow - and that's what will give you real financial security in the long term.

Hopefully these tips will support your dreams and ensure your basic necessities are taken care of without the need for that dreaded 6 letter word - budget.

Feel free to share any personal finance tips you think others may find useful.

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