Successful financial organising enables you to be in control of your spending and savings. Being financially independent gives you peace of mind and an overall sense of wellbeing. When your finances are not in order and you find yourself in debt, it causes stress and anxiety.
13 helpful tips to achieve financial happiness
- Creating a budget is always the first step to organising your finances.
- Set up a budget template for the year with all your income and expenses.
- Keep all your receipts and invoices, so you can calculate your expenses accurately. Monitor your actual spending each month in order to determine your spending habits.
- If you have an overdraft or debt, then your priority should be to pay it off before you start focussing on saving money.
- Cut down or eliminate any “want” spending by opting for cheaper products or putting a time break on luxury spending, until your financial situation is in order.
- Financial advisers recommend that you try to allocate 50% of your income on things you need (house, groceries, transportation, etc.) and 30% for things you want (eating out, entertainment, luxury items and holidays)
- The rest, which is 20% of your income, should go towards saving. If you can only afford 5%, it’s still better than nothing at all.
- Your savings should include an emergency fund. Ideally you should have 6 months’ income saved, in case you lose your work. This is also includes unforeseeable expenses such as home or car maintenance.
- Not all of us earn enough to follow the 50/30/20 budget rule, but try to get there and avoid falling for the luxury traps like renting or buying expensive apartments, cars and clothes you cannot afford.
- Pay all your monthly payments on time. Have debit orders in place which deducts payments automatically.
- Stay up-to-date with current financial news and developments by reading financial articles.
- Stop comparing yourself with others, which only leads to feeling unsatisfied with what you have.
- Avoid instant gratification and try to save up for something nice, instead of incurring debt.
Although many people struggle with finances, everyone can benefit from better planning and organising, which leads to financial stability and independence.
“A budget isn’t about restricting what you can spend. It gives you permission to spend without feeling guilt or regret.” – Anonymous
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