Alternative Financial Management Tips

When it comes to alternative financial management tips, the importance of having a realistic, accurate budget cannot be stressed enough, particularly during troubled economic times.

A useful budgeting trick is to list the expenses in your budget in order of priority. High-priority expenses include your rental, mortgage instalments, insurance premiums, debt repayments, medical aid premiums and utility bills.

These expenses are high priority, as not paying them will damage your credit score and result in legal repercussions, among a whole host of long-term negative effects.

Low-priority expenses include subscriptions, entertainment and clothing. The peace of mind that comes with knowing you will be able to put food on the table is well worth cutting back on these trappings. Indeed, stripping away the excess can be quite liberating.

After organising your budget, you will be able to determine whether your budget has room for any future price increases – which are inevitable – or whether you need to make some.

 

Alternative Financial Management Tips

 

  • Negotiate – if you are struggling, approach your bank and credit providers and negotiate your debt repayments.

 

  • Cut Back – Cut out inessential expenses, like movie tickets, dining out and paid TV subscriptions. Channel this money into your debts.

 

  • Extra Income – Consider selling belongings you no longer use – clothing you don’t wear anymore or jewellery you’re tired of. Use this money to put a dent in those debts. If you are struggling, search the internet for extra earning opportunities, they are everywhere – you only have to look.

 

  • Downgrade – If you are tipping into over-indebtedness, downgrading can save you big time. Selling or trading in your car for a more economical, practical model can relieve a lot of budget strain. Just as moving to a flat with a lower rental will free up some much-needed cash.

 

  • Debt counselling – debt counsellors can negotiate with your credit providers to have your monthly repayments consolidated into one lower payment. This will give you some financial relief – not to mention stress relief – as your credit providers won’t be able to demand payments anymore or take legal action against you.