Published On: Wed, May 10th, 2017

4 Ways To Stay On Budget

We’re all looking for ways to spend less and save more, but some of us are more successful than others. While Kanye West pleaded for $1 billion from Mark Zuckerberg to cover his $53 million of personal debt, we think there are more realistic ways to get your bank account out of financial straits. Though you’re probably not worrying about a multi-million dollar debt, you are dealing with cash problems proportionate to your station in life. Take a look at these 4 easy steps to see how you can help solve them.

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Follow the 60-40 Rule

A budget is one the most important accessories you can use to save on cash. It’s a way to itemize the comings and goings of your hard-earned money, so you’re able to identify harmful spending habits you’ve adopted. But a budget is only successful in highlighting your financial misdemeanours if it’s organized well. This is where the 60-40 Rule comes into effect. Used by financial advisors all over the world, this rule suggests no more than 60% of your income should go towards your monthly necessities. Things like rent, insurance payments, utilities, and groceries should be included within this portion. The remaining 40% should be split equally to cover pocket money, savings, debt reduction, and retirement plans.

Know Your LOCs

An LOC, otherwise known as a Line of Credit, is a great way to cover cash shortages that your budget can’t. Unlike a cash advance, which typically requires a full repayment by the date of your next paycheck, an LOC offers some flexibility when it comes to paying this assistance back. Instead of one single due date, you’ll be required to make minimum payments that coincide with your paydays. What these payments look like will depend on your lender and how much you rely on your LOC. When it comes to MoneyKey line of credit repayments, they’re determined by how much of the credit you’ve actually used plus fees and accrued interest. Consisting of only a portion of what you’ve used, these payments are much easier to cover, especially when you have limited extra cash in your budget.

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Use Your Phone

If you’re only using your phone to scroll mindlessly through your IG feed, it’s time to make a few upgrades. There are a variety of award-winning financial apps that can help you save money. Some help you keep on track of your budget, while others offer the latest deals and coupons for your favorite stores. Mix and match these apps to get the full benefit of your mobile phone.

Talk to an Accountant

With tax season coming up, it might be in your best interest to speak with an accountant or tax advisor before you file. These are professionals who understand the ins and outs of tax credits and other rebates available to someone with your income, and they’ll have a better chance at capitalizing on these deductions than you will on your own. While their services come at a price, they often lower their rates around this time, and the benefits of seeking their advice also tends to outweigh the cost of their assistance.

Despite our best efforts, our goal of spending less and saving more isn’t always easy. See if you can take the burden off of yourself by speaking with a tax advisor, investing in an LOC, and considering how you use your budget and phone carefully. These tips may just help take the pressure off of your finances.