Big financial decisions and day-to-day money management can be daunting. Understanding how much we should be spending and what will determine the steps needed to make large repayments. The tips and tools below can help you break down a complicated process into simpler steps.
First, consider your income
You can get a complete picture of how much money is flowing in and out of your account by first making a list of your current income, including all the money you receive – your salary, freelancers, pension, and other government assistance or investment income.
List all your expenses
Create a comprehensive list of all your expenses. It’s common to be surprised by how unconscious, small, or impulse purchases can add up. This can often be overwhelming, so start with expensive bills like mortgage, electricity, car registration and other loans. Check your daily expenses. Start tracking everything you spend over a week or more to gauge exactly where your finances are going. You can also use online templates or budgeting apps to make it easier to enter and track your expenses.
Put your expenses in buckets
After taking a good look and recording your expenses, the next step is to divide them into buckets like groceries, house, utilities, public transportation, hobbies, etc. Check your list and determine which of these expenses are essential. These expenses are usually your priority installments or payments – the payments you need to make on a regular basis.
Add up expenses and your finances
If your income doesn’t cover all your expenses, ask yourself which of your non-essential expenses can be reduced or stopped. Go through the list until you see what can be handled better, and find a way to prepare to move forward.
Your credit score
Your credit score summarizes your financial history, which lenders check when deciding whether to lend you money. It is affected by various factors, including credit applications, late repayments, and payment defaults or bankruptcy. Find out what factors impact a credit score by performing a simple query on a search engine.
Tools to put you in control
Simply following the advice in this article can help jump-start your plan to gain more control over your finances, no matter what uncertainties you are currently facing. You can find various tools, tips and services that can help you right now. If you want to know more, your banking partner will have many useful budgetary and financial resources.
Get a personal loan
After understanding your financial situation and checking out your options, you might consider taking out a personal loan to ease your current financial worries. You can find out about the latest personal loan offers in Singapore, including current lower fixed repayment options, by visiting your banking partner’s website.
Once you’ve finished cleaning up your expenses and are still struggling to manage loan repayments, consider seeking advice from your lender to see which personal loan Singapore has for your particular case. You might find more than expected. Get in touch and understand your options to ensure there are no unprecedented surprises down the line.