Accumulation of expenses and non-punctuality in paying off basic fees are the most frequent causes of indebtedness. According to research conducted by Millward Brown for the KRUK Group, this problem touches over 14% of our society. Nevertheless, the debt can be tackled in an easy way by taking small steps. Below are several tips how it can be achieved.
Running a household budget is a necessary step for persons who want to make some savings and learn how to manage their own funds wisely. It sounds serious, however it is not so difficult as it appears. How to start? From assessing monthly income and track current expenditure. Thanks to that, you will take control over spent money and get to know where the money “is slipping through our fingers”. Running a household budget fosters a habit of saving and planning future expenses. As a start, a notebook is enough, but an Excel spreadsheet or free mobile software may be a better solution. It is worth checking the advice given on Facebook on a Household Financial Plan fan page.
Summer is a great opportunity to change habits which may be very profitable for our health and… wallet. When the weather is good, you can switch a car for a bike. Fresh air and physical activity will positively affect our mood and save us some money on fuel. However, it should be remembered that during physical activities our organism needs proper hydration. In order to save some money, you can buy a special filter for a tap water instead of buying bottled water. On hot days such investment pays off very quickly. During summer period we willingly spend our time outside e.g. with friends. Instead of going out to restaurants and cafes, choose a picnic. Homemade dishes are a great idea for such occasions. Typical food booths are expensive and majority of them serve unhealthy fast-food whereas this season is abundant with fresh fruits and vegetables. They are not only cheap but you can make delicious preserves and tasty dishes. Besides, summer is also a time of sales. In many shops you can get even 70% discounts. If we plan to purchase something e.g. clothes, it is worth to wait a bit and check when it is going to be marked down.
Saving by earning
Summer months are also a great opportunity to top-up our budget thanks to additional income. It is worth asking e.g. your neighbours who are going on holiday if they need a person who could take care of an elderly person or a pet. Using your skills or licences that you hold is also efficient. Your basic knowledge of English may be used for example to provide tutorials to kids who need some practicing during summer holidays and your lifeguard licence may help in finding a part time job on a local swimming pool. Summer season is also a time for various weekend events where you could find a job as a technical support, a hostess or a waiter.
Don’t burry your head in the sand
It good to use the money you earned during summer for repayment of your debts. A quick contact with a company that is servicing our debt and settling a dispute amicably is just another saving. Thanks to that we avoid the cost of legal and vindication proceedings which would significantly increase the total amount of debt. Therefore, you should solve this problem as soon as possible. Repayment of debt does not have to generate difficulties for our household budget, e.g. in the KRUK company it is possible to pay off the debt in instalments which are tailored to the financial situation of a debtor. Thanks to that, it is possible to solve the problem of indebtedness step by step and get your finances above the line.