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Manage Your Finances

How Can I Control Your Finances? Getting your finances under control is not always easy and it can take time. But there are several targets you can set for yourself that will put you in greater control.

Here are some pointers:

Each month, try to reduce a different spending category by 5-10%
For example, take public transport instead of driving on some days.

Start a savings account for large, infrequent expenses
If you spend less than you earn, your surplus can be allocated to expenditure on luxury items.

Charge items to your credit card only if you are sure you can afford to keep up with the monthly repayments
A credit card doesn't make you richer. It facilitates the more convenient use of money that you already have.

Treat a credit card balance like you'd treat a bank loan for the same amount
A credit card balance is essentially an unsecured loan which can get bigger very quickly on the back of interest charges. The best option is to pay your credit card dues fully so that interest charges don't kick in. Even if you decide to have an outstanding amount on your credit card, you must have a plan to repay it.

Avoid the "sale" mentality
When you buy a $100 item on sale for $60, you don't save $40. You spend $60. It's only a deal if you need it and can afford it.

Track your spending and income
Monitor how much of your hard-earned money you are spending to make sure you don't sink into debt.

Try to increase your income if you can
Is a second job possible? Can you sell something you no longer need?

Reward yourself
Working your way out of debt is a long, hard task. It's also a big accomplishment. Find inexpensive ways to celebrate your progress.
Gaining Financial Control
Budgeting Basics
Keeping a Budget
Am I Headed for Trouble?
How Can I Control My Finances?
What if My Debt Goes Out of Control?
Resolving Credit Problems
Bankruptcy Options
Handling Hard Times
Dealing with Job Loss

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