The Personal Finance Checklist

Personal finances are one thing that isn’t really covered in school. You’re on your own. You have to learn, and you have to learn fast. It’s not all just about saving for your retirement or opening a vague savings account in case you wake up one day in the next five years and decide you’d like to go on a round-the-world cruise. Our personal finances give us a digital identity in terms of whether we will be accepted for things like credit cards, loans, and mortgages. That’s why keeping these things in check is not just a good idea, but it is essential.

However, if your personal finances are already looking to be in something of a precarious position, you may want to consider looking into extra information first before we look at a personal finance checklist. For example, check out creditfix.co.uk for more details on CCJs. Now, let’s continue with things to look out for when trying to improve your personal finances.

1. Track your monthly expenditure

Tracking your monthly expenditure is something people shy away from, but if your expenditure outweighs your income, and if you are relying on credit cards, you are going to run into financial difficulty when those credit cards are maxed out and you find that you don’t have enough money to make ends meet each month.

2. Revise your budget month to month

Life changes. Things move on. Your finances keep up as best they can, but when things change faster than your finances can handle, you may not even notice that you are over spending. Things like switching to a more expensive lunch at work, or starting a new relationship and paying for dates can all affect our spending – keep an eye on things.

3. Make payments on time

The due dates for your bills are not a suggested date. They are there for a reason. Late payments show mortgage lenders and other credit and loan providers that you are a potentially higher risk customer. Mixed with other things going on with your finances, late payments could mean that you are turned down for credit in the future.

4. Check your credit score and follow the advice

Credit score services will give you a score (typically out of 999, but this could change between services), and will often offer tips and advice on how to boost your score. For example, did you know that simply being registered to vote and having your name on the home address can positively affect your credit score? Look into the pointers you receive.

5. Put money aside for emergencies (so you don’t have to rely on credit cards)

This is easier said than done, but any monthly savings you can put to one side and not touch will be something you later look back on and thank yourself for – when things like home or car maintenance crop up, you are going to need a little extra cash to make sure you don’t need to put the payments onto a credit card.