you’re having trouble with your finances, you’re not alone. Numerous studies
have found that the average American has less than one month of living costs
saved. For most people, if they lost their job tomorrow, their first solution
would be an online loan.
you’re feeling the stress from a difficult financial situation, here are some
steps you can take to get your finances in order:
Switch to using cash
was the last time you handed over cash for a purchase? Credit and debit cards
are handy, but it can be difficult to keep track of what you’re spending. When
you’re using cash, you can easily see whether you can afford to pay for the
things you want or not.
all of your cards away for at least a couple of weeks, and give yourself a
budget. Take this amount out of the ATM, and only use cash when you’re
shopping. You’ll quickly see where most of your money is going- helping you
Track your spending
an app or notebook, make a note of every cent you spend for those two weeks.
Some apps can do this for you automatically if they’re connected to your credit
or debit card. Once you’ve done this, you can see where you can afford to cut
down on your spending. It could be that after-work happy hours are costing you
more than you can afford, or you could be saving a lot of money if you started
cooking at home.
find one large expense that you can cut out completely. The best way to do this
is to replace it with something else (unless you’re giving up smoking, and in
that case, good job). You may find that your daily Starbucks is eating up a
large chunk of your budget. Instead, consider purchasing a nice travel cup and
some coffee you like and making your coffee at home. If you’re never home and
you usually watch Netflix, you may be able to cut your cable bill or remove it
completely. Get in touch with your utility providers and compare costs as well-
you can often save hundreds of dollars a year by switching.
Create a plan
you’re in big debt, it can sometimes feel overwhelming. The best thing you can
do is sit down and make a plan to tackle that debt. Otherwise, ignoring it will
only make the problem worse- and can ruin your credit rating.
if you can consolidate your credit cards onto one with an interest-free period,
or look for a low-interest loan to consolidate all your debt. Then, set up
automatic payments so the money disappears as soon as you’re paid.