The Four Finance Issues That Everyone Struggles With

Let’s face it: we would all like to be better with our money. There are issues that everyone struggles with when it comes to our finances. Some people find it hard to get organized, to make sure that the bills are getting paid on time and that everything has been accounted for at the end of every month. Other people cannot get their heads around where their money is going each month. They look at their bank statements and wonder how on earth they have burned through their paycheck so quickly. Whether it’s managing your debt or putting enough money away to save for the future, everyone has their own financial bugbear.

With the winter coming in, this is the time of year when everyone tries to get a firmer grip on their spending to prepare for those higher energy bills and holiday spending. Here are some of the most common finance problems and how you can get around them.

Saving For The Future

This one is more common than you might think. If you are wondering you should start working on your pension or retirement fund, the answer is “several years ago.” It is difficult if you are just starting your journey on the career ladder to have any idea of where you are going to be and what kind of financial situation you are going to be in when you finally retire, but you need to start saving now and making some smart investments to ensure that you have enough. If your employer offers contribution matching on their pension scheme, such as a 401(k) then this is something that you should be taking advantage of. Any savings you make now will help you in the future.

Overspending

We were all guilty of doing a little too much online comfort shopping during the pandemic. We were locked down, most of our favorite ways to relax and enjoy ourselves were unavailable to us, and so we ended up spending a lot of money online. But impulse spending is a habit that can be hard to get out of. It may not seem like a lot of money in the moment when you are treating yourself to the occasional item or night out, but they add up.

Creating a weekly or monthly budget is a great way to make sure that you are spending what you can afford. Something as simple as a meal planner is also a good way of cutting out the temptation of impulse purchases. When it comes to looking for ways to cut regular costs, don’t be afraid to shop around for a better deal on your insurance or energy bills.

Managing Debt

Sometimes those credit card debts and other loan repayments can start to stack up without you really noticing. Before you know it, a big chunk of your paycheck is going out straight back out of your account on repayments. Mortgages, cars, credit card debts…they all add up and they can become increasingly difficult to keep track of. The only thing you know for sure is that all these loan providers want their money back. When this happens, it becomes very tricky to find a way to start working on a financial cushion and to start planning for the future. If you are wondering how to stop living from paycheck to paycheck, these tips from Tally can help. Their app can help you get to grips with your credit card repayments with a few simple steps.

Creating A Better Credit Score

This is particularly important for anyone who is looking to make a big financial commitment, such as applying for a mortgage on their first home. It is always a stressful time when you are applying for a home loan knowing that someone is going to be pouring over your entire financial history and worrying about any issues that could be outstanding can keep you up at night. With the housing market the way it is right now, the property prices are incredibly high and they could go higher. You need to start thinking about your credit score as far in advance of a loan application as possible.

While you can’t go into your credit history and make changes, there are steps that you can take to ensure that your score is as good as it can be. For starters, avoid taking out any further loans while the application is in progress as this will be a huge red flag. Make sure that you are paying off your outstanding debts on time, and try to pay off as many as possible before you put the mortgage application in. You should also note that make a big deposit into your account during the application is also seen as a warning sign, as it implies that you may not be able to afford the loan repayments without outside help. Avoid making any major life changes during the application, such as changing jobs, as the loan providers are looking for stability.