DIY personal finance management – Dos and Don’ts

There are times when you simply don’t want to rely on others to help you “mend” your finances and you would rather rely on your own instincts

DIY personal finance management – Dos and Don’ts
There are times when you simply don’t want to rely on others to help you “mend” your finances and you would rather rely on your own instincts. And it won’t be wrong to say that it has worked wonders for many such individuals that had the courage to take the financial reigns in their own hands.

If you have ever been in debt, rather a vicious cycle of debt, you must have definitely tried to lay your hands on books (print media or web content) for finding solutions to get out of debt. But honestly, how many people have actually derived benefits from reading such books or content?

It is quite relative and if one solution works for you, it may not work for someone else. So, if you have realized this fact, you can start wrapping up debts on your own and you can try to become a financially responsible individual provided, you know what financial errors you have made and that you must not repeat them again. As such, it is best to opt for DIY or Do-it-Yourself ways to take control of your finances.

Tips for better DIY money management

When you have decided to take the reigns of the finances in your hands, it is quite likely that you will focus on debts (if you have any). So, what should you do in order to address the issues? Find the answers in the paragraphs/points that follow-

  • Consolidate your debts

If you have many debt accounts, wrap it up and make it manageable. And for this you have to consolidate your debt accounts. Instead of paying off to different creditors or lenders, you can opt for a single large loan and then pay off your debts.

In order to avail the loan you can approach service providers or vendors like that help you in accessing loans in a much easier way and most importantly faster. Also, such firms help you to select the right loan that will help you to meet your requirement. So, shop around for the one that is best for you and then zero-in on the vendor.

  • Make note of income and expenses

Keeping an account of the income that your household generates and the expenses you incur every month is crucial. You will come across many that tend to spend more than they earn. The trouble usually strikes such people. Try to keep money aside for all your monthly financial obligations, keep some cash for the rainy day, and a certain amount for miscellaneous expenses.

  • Shed the frills and fancies

It is not necessary to be extravagant with your expenses, especially when you are trying hard to set things straight. So, if you had been eating out 3 times every month, cut it down to one or none till the time you don’t gather things up a little.

Why DIY personal finance management makes sense?

It definitely does make sense due to the following reasons-

  • Opportunity to customize

You are in a better position to customize your finances according to your prevailing financial situation.

  • Better control over your finances

When you realize that you have to take control of your finances, it means that you know the manner in which you have been handling finances all these years wasn’t right. So, you know which areas you need to rework on so that you can set it straight. And such finer aspects of your personal finances may not be assessed fully by a professional in the event you seek professional assistance to wind up your debts.

  • Sense of gratification

The fact that you are in a better position to assess your finances and that you have come a long way in setting your finances straight gives you a sense of gratification and contentment that can be experienced only by you and a feeling not many may realize. 

Date Of Update: 26 September 2017, 04:48

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