The Key To Success? Staying On Top Of Your Financial Situation February 20, 2017My MoneyOff

Nobody got rich by ignoring their financial situation and burying their head in the sand, ostrich-style. The only way to maintain a solid financial base, whether you’re aiming for the stars or just trying to get by day to day, is by staying intimate with your finances. Understanding your incomings and outgoings, and monitoring your situation on a regular basis sets you up for success. This goes for both business and personal accounts – it’s all about staying connected to what’s going on – here’s what to do.

Don’t ignore your balance. One of the worst things you can do is ignore your bank balance – you make poor financial situations that don’t have a basis on a realistic idea of your financial stability, and can even end up with costly fees when you stray into your overdraft accidentally. You should be checking the balance and recent transactions on any active bank account at least weekly. This also enables you to spot any unusual activity quickly, which is crucial in fraud prevention. Don’t make any financial decisions, including large cash withdrawals, without first consulting your balance – there’s no point going overdrawn if you can help it.

Keep an eye on your credit rating. Many decisions in your future will depend on your credit rating, from a business development bank loan, to a mortgage, to buying a car. Whatever your financial history, it’s useful to know your credit rating in order to plan for the future, but also to know whether you need to make moves to improve it. If you’re unsure what your credit rating is, click here to get started and find out how you will be perceived by potential lenders in the future.

Set yourself a budget. Setting a budget is the best way to aim for success – it’s what all successful businesses do, and it’s something that we can take into our personal lives with us. Setting out your incomings against your outgoings, including accommodation costs, transport, financial products (insurance, for example) and living costs allows you to see a bigger picture of how much you can afford to spend on luxuries, and how much you can safely save. Having a comprehensive budget allows you to make informed financial choices, and is one of the best debt-avoidance methods too. Keeping within a budget should result in a feeling of genuine pride, but also security and comfort with the future.

Don’t let a loan run away with you. Keeping on tops of your finances also includes keeping on top of your debts. Your debt repayments should always be prioritized over your luxuries in your budget, as letting your debt run away with you could result in huge repayments and even legal action. Only take on debts that you can afford the repayments on, and seek the advice of a professional if you’re struggling with repayments currently – it can be a truly vicious cycle.

A financially successful future starts by making good habits, so whether it’s your business or your personal money, start those good habits today.

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