It can feel like hard work sometimes, to keep your finances running smoothly. However, there are a few steps that you can take which will allow you to relax about your money more and make sure that you get healthy and remain so.

Pay off your debt
Paying off debt is not easy but it is achievable. Obviously the higher your debt, the harder it will be, but it is possible to do. It can be easier to break it down into small steps and you need to be proud of every repayment you make, however small. Each one will be a small step towards being debt free.

Save each month
Once you have your debts paid off you should aim to start saving some money each month. Getting into the habit of saving is a really good thing to do. You can even set up a direct debit so that you save money automatically when you get paid and therefore do not need to remember to do it.

Build up a buffer
Building up a buffer of savings can form a really good security blanket. If you can have enough money to cover three or even six months living expenses you will know that you can afford to live for a while, even if you lose your job. You will also have some money to cover any emergencies such as replacing broken white goods, paying unexpected bills etc. It is worth committing to topping up the savings though, if you have to dig into them.

Pay bills on time
It is really good practice to be able to pay your bills on time. You build up a good reputation with the companies that you are paying and it will also reflect well on your credit report. On a personal level, you will know that things are paid when they should be and can feel comfortable knowing that you do not have unpaid bills hanging over you.

Keep Budgeting
It is a good idea to keep doing these things in the future. Once you have debts paid off and a savings buffer, continue to budget and save. This is because you never know when you may be short of money and you will then be used to not spending excessive amounts and you will be able to manage more easily by not spending so much and by having savings to fall back on.

Image courtesy of Adrian Scottow
Image courtesy of Adrian Scottow