Lets take a look at Financial Tools that can help anyone manage their finances more efficiently. Whether you are a newby just starting out and wanting get an understanding of budgeting, perhaps a new home owner and thinking about Mortgage Overpayments. Alternatively, you could be aiming for FIRE or building Generational Wealth. Whatever the reason, these financial tools will help you manage your finances better.
A budget can be a blessing and a curse. Of course to start with it is going to show you where the leaks are. This awareness is so important to turning your finances around though. Once you have found a sheet that you like and feel comfortable with, get started with your bank statements and input your real data. Not just what you think. To start with I wouldn’t really change anything about your spending because you need to ensure you are being honest and realistic with yourself. Going cold turkey on spending does work for some, but I like to think of budgeting as a long term change in habits – a lifestyle change. To me, that is the only way to be content whilst getting rid of debt.
Once you can clearly see what you are spending and on what, you can make some goals. Personally, I think this works best when written down. There are so many free journal pages or goal affirmation sheets on pinterest, you don’t NEED to spend money on getting organised. You can do some simple sums to understand how long it will take to repay a debt or save up for a house.
So, if you have gotten to the point of actually signing on for a mortgage I would hope that you are pretty aware of your incoming and outgoing bills. You could even be thinking about making overpayments to reduce your term or monthly payment.
These mortgage overpayment calculators are handy financial tools and I often find – quite motivating! You can input your real figures, change the variables and create a plan for your mortgage payments.
Paying Down Debt
Perhaps your budget was literally just the beginning and before you can even consider saving you need to get on top of your debt repayments. This is such an important step and you should feel very proud of yourself for getting here. Unfortunately, the hard work isn’t done yet, but it is very worth it. Knowing that you are in control of your finances and no longer carry the burden of debt.
Using a debt calculator is an excellent financial tool to boost your motivation. Seeing your end date and the ways to bring it closer can be very rewarding. It creates a sort of game out of an often stale time.
Sometimes paying down debt isn’t an option. When this is the case it is always worth speaking to people that actually know and understand Debt Consolidation.
Becoming Financially Independant and Retired Early (FIRE) doesn’t suit everyone. However, I feel that it is an amazing goal to work towards, but I don’t think you will never regret savings.
If you are currently trying to get out of debt and are struggling for motivation, there is a wonderful community of people doing the exact same thing as you. Search on Instagram under the hashtags for #debtfreecommunity #debtfree. Find people that can share your struggles and make you feel less alone.
Whilst you are there, consider looking up #fire #retiredearly and see what being debt free can look like for those that take their budgets to the next level! Any time you need motivating on your debt free journey, find some support and stick at it!