One of the soundest ways to approach your money is to manage it the way a business manages its own books. Now, before you gasp at the thought of it being too complicated, we’re going to walk you through the principles of financial management.
When a company goes public and shareholders take up a piece of its ownership, that company is now accountable to many groups of people and has to demonstrate sound financial management.
That means our first step in embracing the tenets of financial management is to imagine that you were publicly accountable for the way you spend and save your money. How would you behave if everyone found out about that $20 monster burger you chose to have when you already have a home lunch in the office fridge?
You’d probably be a little more discriminate with your choices, right?
Now that you’ve got that first step down, your next move is to create a budget. A budget is the cornerstone of every serious company’s operating costs and it should be no different for you. Your budget should list every last inevitable expense (rent, food, gas) and then decide how the remaining sum will be managed.
You’d be surprised how few people truly realize exactly how much money they have left over after paying their regular monthly expenses. They know what the costs of these expenses are, sure, but never went to the trouble of calculating exactly what is left after paying off obligations.
Now that you have your remaining balance, you need to choose how much of your money will be saved and that also means looking at your non-essential spending to determine how you can retain even more cash.
Do you really need to have that bacon egg sandwich – of could you simply throw together that same sandwich at home for 30% of the restaurant’s price? Cutting back on restaurants and take-out food should be a top priority in your financial management plan.
Every company has a plan to sock away some savings – even if they’re running debts and hold it in reserve in the event that they should ever need to dip into that sum.
Regarding debts, if you want to make your financial management plan even simpler and you feel you have debts from a few too many sources, LoanAway offers debt consolidation loans that can help you streamline all of your outstanding loans into one convenient payment.
This debt consolidation loan can help you in a number of ways. After you take it on, you know you’ll only have one set payment each month. There’s no fluctuation in price and there’s only one date you have to keep in mind.
Furthermore, LoanAway allows its customers to repay loans for a period of up to 36 months, giving you all the “wiggle room” you need to concentrate your budget more than just your loan and other obligations.
If this is the first time you’ve heard of a debt consolidation loan, but it makes perfect sense to you from a financial management standpoint, please feel free to pick up the phone and speak with one of our loan specialists about how we can help you.
Our specialists have been extensively trained to present you with the best options for your financial needs and will happily provide you with a free consultation. Call us between Monday to Friday, toll-free: (866) 689-0091