It’s safe to say none of us are perfect when it comes to money and we could all benefit from giving our finances a regular check. If you’re looking to get a better grip on your money and develop better habits, setting yourself some financial goals and putting together a budget is a good way to keep yourself motivated. You can use a budget planner to organise your finances.

Priority outgoings are those that have the most serious consequence should you not pay them. They include your mortgage, rent, council tax and utility bills – you must pay these before you do anything else with your finances. It makes good sense to keep an eye on your credit card spending too and work out your budget to enable you to understand how much you realistically save each month.

Following a budget

The majority of people don’t follow a budget despite the fact it’s one of the most effective money management tools. If you’re eager to get a better handle of your finances, then you need to understand your income month after month. To create a budget, simply list your existing monthly expenses and compare it to what you earn. If you’re living payslip to payslip, examine your spending and decide what you can cut back on.

Pay your bills right away

To eliminate the risk of receiving a late fee or bad credit, make a point to pay your bills as soon as you receive them. Set up direct debits so that your bills are automated and the money will go out on a date set by you. Either way, taking this step will help you to determine how much money you can afford to save and how much you can leave in for spending purposes.

Have a rainy day fund

Everyone needs a rainy day fund. Have some money put aside for emergencies and those more exciting things in life such as a family trip, a child’s education or a wedding. For most of us having money that we can access quickly to pay for unexpected things such as unforeseen bills can be a real lifeline – especially if it builds up over time. You might also want to think about taking out a loan, such as a small loan as a way to help keep your finances in check during this period.

Another good thing to keep for a rainy day would be an MOT test paid for by Halfords Autocentre. All you have to do is pop into a store, buy something between now and October 14th, for as little as the price of an air freshener, and you’ll receive an MOT test valid until October 2019. Perfect for those of you looking to save some pennies throughout the year.

Live below your means

A simple trip to the coffee shop for a drink or weekly dinner nights out can soon eat away at your money. Believe it or not, cutting out a £2.50 coffee a day could leave you over £900 better off a year – that small daily change could save you hundreds a year and imagine the things you could do with that money instead.

When going out, only take the cash you absolutely need and don’t have your card with you. This way, no matter how tempted you are, you can only spend what you have in your pocket (or wallet or purse). If you don’t go to the shops quite as often, you can’t be lured into buying things you don’t need. Find something else to do – ideally activities that don’t cost money.
Make the most of your money

Once you have your debts under control and your emergency fund, it’s time to start thinking about investing in your future. A good way to start is with a stocks or shares ISA – they’re completely tax-efficient and offer you the opportunity to pay in large amounts of money, or make regular payments – whatever suits you best.

If you have a habit of regularly checking your credit scores then you know that credit scores change every time. While it might excite you that there is an upsurge in your score, you’ll be equally worried if there is a sudden decrease in your score. The calculation of a credit score is highly complicated and it will be difficult to identify the specific reason why your score dropped.

Credit scores are a reflection of your credit report so if there is an unexpected drop in your score, then it is usually because of a drastic change of information in your report. Here are a few reasons why your scores dropped:

Missed And Late Payments

Missing a payment or paying your debts late is obviously one of the top reasons why there will be a sudden drop in your score. One late payment might just have a little impact in your score but accumulating missed payments will have a significant effect in your score. This is why you should always see to it that you are paying your debts even if it is way past the deadline. The longer you allow the payment to be missed, the larger the decrease will be on your score. Debts that are more than 30 days late are immediately reported to the credit bureaus. As soon as this reflects on your credit report, your credit score might have already dropped.

Had A Massive Purchase

One important factor that affects your credit score is how you utilize your credit. Some people might still be surprised but making an expensive purchase such as starting a business or buying a house will decrease your credit score even if you fully pay your balance on time. This occurs because credit card companies usually report the balance of your credit card at the last day of your billing cycle. The good news is it’s simple to fix this kind of drop in your credit score. You only have to settle the balance in full and avoid making other credit purchases. After doing this, you will need to wait until your credit report shows the balance.

Frequently Changing Address

Lending institutions may regard frequent changes in your address as a sign that you are financially unstable and is unable to pay rent. Lenders would like to see stability as it shows that you will be able to pay back your debts. So, seeing something that indicates the opposite can decrease your score.

Your Account Is In Collections

To be able to secure your credit score, it is crucial that you pay all accounts under your name and not just your cards or mortgages. If you fail to pay your non-credit accounts such as your monthly electric bill, the defaulted balance will be forwarded to a collection agency and will be reflected on your credit report. Once this collection shows on your credit report, it will cause a drop in your credit score.

Error In Your Report

Sometimes, but not often, a borrower sees a mistake in listed on his reports. But most of these mistakes are not sufficient enough to cause a decrease in a person’s credit score. So, if you are sure that you did not do anything to lower your score, check your credit score because an error might be the cause. You will need to assess every part of your credit reports to check if a mistake has been making your score to drop. If you ever you see one, make sure to dispute the error so that it can be rectified immediately. Act fast so that your score will be able to recover again.