Too much month at the end of the money? Many people face the problem of running out of money before their next payday. This is usually because they don’t take the time to organize their ins and outs and end up wondering what happened to their money. There are solutions to help you get control of your finances that have helped me over the years and now I want to share them with you so you can learn how to get control of your finances the easy way.

MAKE A LIST OF YOUR MONTHLY BILLS

Monthly bills consist of things like rent, electricity, water, council taxes, and gas. These are bills that are usually the same amount every month. Make a list of all the bills you pay each month along with how much you’re paying for each one. Now add up the figures to find out how much you are paying each month in total. If a bill falls between two amounts, enter the higher amount. For example, if you pay between £50 and £70 for electricity, enter £70. You can find the amounts by reading your bills or bank statements.

Some Electricity and Gas companies give you the option of paying a single monthly payment. This way, they can monitor how much gas or electricity you’re using and adjust your monthly payment accordingly. It is good if you take this option so that you only have to add the extra money when they increase or decrease the direct debit. The companies don’t care if you go into gas debt in the winter, as your payments will reduce the debt in the summer months if you don’t use the heat.

SET UP DIRECT DEBITS

Direct debits allow businesses to withdraw money directly from your account when the bill is due. Once you know how much you have to pay in bills each month, you can leave that amount in your account or transfer the entire amount to another account if you want to use a separate account for bills. Companies will notify you of any increases so you can adjust the amount you pay. If possible, choose the same day for the payment to go out if you get paid monthly, or the closest day, which is useful if you have all your expenses coming out of the same account.

Note: These companies can only take out what has been authorized, so you don’t have to worry about paying extra money. There are also times when they can accept payments 2-3 days early due to the direct debit date falling on a weekend or bank holiday, so make sure your money is in your account in advance. Call the companies you pay to set up direct debits. In fact, you can save money with the direct debit method as they offer you discounts.

MULTIPLE BANK ACCOUNTS

Your bank allows you to open multiple current or checking accounts that you can use for various purposes, such as expenses and bills. Use one of your accounts for your monthly bills and set up your direct debits to get out of this account. Transfer the full amount of money you need to pay bills to this account once a month and you’ll know the bills are in order for the month. I would recommend that you add extra money to the total so you don’t have to worry about being overdrawn. It may also be a good idea to have a small overdraft in the account in case you need it.

You can also use an account for your general spending needs, like groceries and fuel. I recommend that you transfer your salary to this account, so that after you transfer the money from the bill, all that is left is yours to spend. You can also use this account as a savings account by letting your money stay there and spending only what you need. Anything left over from Payday can be classified as savings.

If you prefer, you can have a separate savings account where you can transfer a fixed monthly amount or do it automatically through a standing order. Or you can manually transfer anything left over from last month. It is always advisable to have some money saved in case you need it. You never know when there will be an emergency or a situation where you need extra money. You can choose an amount that you can comfortably save and consider it a monthly bill.

ESTABLISH EXPENDITURE BUDGETS

Sometimes we can be too reckless with money. Imagine walking into the store with the kids in tow and they start adding things to the basket. Imagine seeing something on sale and getting as many as you can or choosing something you didn’t really need but was a bargain. After setting aside money for bills, it’s a good idea to set up a spending budget. For example, you may only have £400 left for the month, so you could limit yourself to spending £100 per week. Make sure you have the things you really need before you start spending and use leftovers for treats.

You can save money by focusing on the most important purchases of the week and by buying certain things in bulk. Buying a six-pack of baked beans can be cheaper than buying six separate cans. If you like to drink, buy some cans to drink at home and reduce your time in pubs and bars. If you use public transportation, try buying a travel pass to save money by paying for fares separately. Try to pack a lunch to take to work. Basically, if you really don’t need it, then don’t buy it.

PAY DEBTS

The longer you have credit card or loan debt, the more interest you’ll pay. If you have debt, there are ways to get it under control and save money.

1. If you have more than one credit card, consider a balance transfer. By transferring all of your credit card balances to one credit card, you can get a lower interest rate and a lower monthly payment, making paying easier and faster.
2. Use the savings to pay down debt. This will save you money on interest payments and reduce debt faster. If you have extra money, try eliminating smaller debts first to get rid of them and have extra money for larger debts.
3. Consider a bank consolidation loan. You can borrow enough to pay off all your other debts and only pay a fixed monthly payment via direct debit. By reducing the number of debt payments to a single loan payment, you can end up with extra money each month.
4. If you can’t get a loan, then consider an Individual Voluntary Arrangement (IVA). This allows the interest on all your unsecured debt to be frozen and you pay a fixed monthly amount as much as you can for five years. This does not apply to secured loans, such as car financing.

I hope this article will benefit you in some way. I have personally lost a lot of money over the years due to debt and reckless spending and I have finally fixed myself. I have no debts and money in the bank. And I hope you get to this point too.