After years of uncertainty and constant change in the economy, it is always best to prepare for what you can control. Instead of allowing the events of the world to control your finances, take the necessary steps to maintain financial security and sanity.
Create a solid plan of attack to pay off credit cards
I know this is an exercise that you have done many times. However, let's go laser focused and eager! One of the best things you can do is reduce your debt by whatever means necessary to keep you from becoming overwhelmed in the future. First, make a list of all creditors and write down all interest rates. Depending on what works best, you can either build your momentum and start with the lowest amount owed or work on the revolving loan with the highest interest rate. While there is no one-way approach, make sure you are genuinely committed to reducing debt as much as possible. Don't be afraid to set reminders on your phone or post personal notes at home to stay focused. When you see your debt drop it will be an important boost to stay on course and keep going.
Re-evaluate your budget
We often believe that there is not much room on our budget if we honestly haven't taken the time to evaluate how much money we are spending per month. Take the time to ask yourself these personal questions. Are there any subscriptions that you are not using in full or are getting your money's worth? Are you spending too much on entertainment or food? How much product is wasted after every shopping trip? Re-examine your entertainment or discretion on these items and transfer the remaining balance to your savings or debt reduction. Start where you are with what you have. If you have an extra $ 50 after the household expenses, draw a line in the sand there and build on it.
This strategy doesn't just apply to those who can be classified as high earners. Budgets are not supposed to be stoic and uncomfortable. They should provide us with the necessary guard rails. Think of it this way: you are driving up a mountain and there are no reflectors, no guard rails and no signs to support you in an already nerve-racking experience. Your finances are no different. To achieve the goals for you and your family, you must. Set up parameters so you can see things fully.
Side Hustles are the name of the game
Gone are the days when you could rely solely on billion dollar companies to make sure you are living the quality of life you want. Unexpected layoffs and downsizing are the be-all and end-all and will never be accompanied by an advance warning. When you think about what to monetize; Consider the following: What do your friends shape you as a contact person for? What is your responsibility whenever you are planning something for your family or friends?
Any talent or skill that you have can be easily monetized. Use social media as a starting point to measure the interest of others and at the same time increase your customer base. Keep in mind that this is scalable and can boot up as slowly or quickly as you like. You can create a profile for your services on various online platforms. Referrals, word of mouth, and various social media channels bring additional funds to the places where you need them most. Don't forget to have fun with it and make changes as you see fit! When frustrating moments arise, take a step back and remind yourself of the overall goal of creating a financially stable environment for you and your family, regardless of what's going on in the business world.
Increase your emergency fund
For every dollar that is not allocated in your budget, your spending habits actually do the allocation for you. Please set a fixed amount in each payment period to top up your emergency fund. No amount is too small; Even if it's only $ 20 per pay period, you need to make it a priority and start somewhere. The amount can be increased and adjusted over time as your level of comfort increases.
Any goodies like bonuses, cash gifts, side business income, and funds left after household expenses are met can be thrown into your emergency fund. If you've achieved your goal in person, it's okay to establish another one! There is never enough money in the reserves. When a family member falls sick, an unexpected job loss occurs, or an emergency occurs, it is all worth making short-term sacrifices.
Review your investment portfolio
When it's been a while, take a look at your investments, make sure you are still familiar with the information available, and make the adjustments you need. Do you need to make adjustments to suit your current level of comfort? In the past, have you been more open and willing to risk tolerance and do you want to adapt now? Ask yourself these very important questions and be honest.
Avoid New Debt
It is one thing to pay off debts and another animal entirely to avoid running into new debts. If possible, avoid opening new lines of credit. You don't want your hard work to be in vain. Remember – you are doing important work to make sure your finances don't suffer, no matter what happens in the economy. Whenever a major purchase such as a car or home is made in the near future, you can create an account dedicated to it. Consider saving more over time to lower the monthly cost of living. Hurrying can get the best of us, but it doesn't have to be. Emotional or impulsive purchases usually don't align with a financial goal. So make sure you show enough self-control to focus on the goals ahead.
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Marsha Barnes (14 posts)
Marsha Barnes is a financial guru with over 20 years of experience striving to empower women worldwide to be financially successful. Financial literacy and literacy are a passion of Marsha and provide practical information to clients to build their general confidence in their personal finances.