How to Stay On Top of Your Personal Finances: 5 Costs You Should Review Regularly
/Money management is a skill we all need to acquire, and perhaps the most important part of balancing your finances is looking into your outgoings on a regular basis. There are aspects you can learn for free, but you will need to invest in your education at some point.
Like anything, what you put into it, you’ll get out of it. Some expenses are more impactful than others, so here’s a look at the costs you need to keep tabs on above all others.
Your car insurance costs
Car coverage can be very pricey. You may be able to reduce it by switching insurance providers.
Checking up on what you’re paying when the time to renew arrives is wise. You can also compare prices from different brands using a site like CheapInsurance.
Your utilities
Like car insurance, the price of utilities can vary depending on your location, provider, and size of your home. If your location has different options for providers, compare their prices to see if you can get a better deal.
Your mortgage repayments
If you own your home, the biggest portion of your monthly outgoings will likely be your mortgage repayment.
You may be able to reduce your monthly payment by refinancing during times when interest rates are lower.
Rates make a major difference to repayment amounts, even if the difference between one mortgage deal and another is a fraction of a percent of interest. You could find yourself hundreds of dollars a month better off with a simple switch.
Your spend on groceries
Some of us take grocery shopping for granted, in that we don’t tend to worry too much about what we’re paying for everyday basics.
If you fall into this camp, then you could be overspending unnecessarily simply because you aren’t aware of just how much your choices at the store make a difference to your budget.
Checking up on your average food spend month on month will let you chart the ebb and flow of average basket prices. It could reveal that you’re dedicating a lot of cash to costlier items when more affordable equivalents would be preferable.
Some personal finance apps, such as Personal Capital and Mint, let you break down your spending into different categories automatically, which is convenient when it comes to calculating things like grocery costs.
Your savings
Putting money aside for a major purchase, an unforeseen emergency, or a spur-of-the-moment opportunity, is an important step in staying on top of your finances. Set a savings goal and review your savings every week to track your progress.
Final thoughts
There’s lots to think about when it comes to managing your finances and learning about how to become an investor. That’s why we recommend a weekly money date to review your finances and your goals. When you make your financial life fun and joyful, it’s a lot easier to stay on top of your finances.
