There are many ways to make a bit of extra cash on the side, and you know the power of a savings account already, but there are still some areas of the financial world you just don’t want to face – and there’s no wonder! Having a successful financial life is difficult for the majority of people, thanks to low wages, the rate of inflation, and just how hard it can be to regularly scrimp and save.
But it doesn’t have to be an impossible thing to do, and all you need is a bit of discipline on your side to sit down and really learn the ropes. And that’s why this post is here!
Sticking to a Budget
Making a budget is one thing, but being able to stick to that budget for the foreseeable future is a totally different thing. After all, when you sit down to create a budget, and you have all of your receipts and pay slips and average spending numbers, you’re in the zone – you’re going to be confident about the budget you create, and believe you can stick to it.
However, in practice, things are not so clear cut. You’re going to run into miscellaneous expenses that’ll take your budget down, and from time to time, you’re going to want to buy things that just aren’t in the budget either. Don’t worry, it’s only human to react like this to a good deal, and you shouldn’t blame yourself for being tempted.
Most of all, if you want to stick to your budget, you need to take your time with any and all purchases. The big things you both want and need, such as a new sofa or a new car, can take 48 hours of consideration time – if you’re still sure you need to pay out a few days later, you know you’re still doing your best to stick to the budget. Similarly, make good use of shopping lists to act as a guiding light, and never ever hit up that grocery store when you’re hungry!
Paying Off Debts
Paying off debts should be your number one priority within the financial world. When debt is hanging over your head, it can be hard to do all kinds of things, such as getting a mortgage and/or another loan you desperately need, as well as secure the job that’ll help you pay them off, and even just relax when you really need to. Debt can really be all consuming when you don’t know what to do about it, and that’s something we need to focus on right away.
The best thing to do is to tackle the situation head on. You know you’re struggling to pay, and the companies you owe won’t be able to get anything out of you unless they acknowledge this too – it’s why debt consolidation, as well as debt payment plans, exist. Make sure you do research into both of these before you let yourself worry too much.
Indeed, some loans can go the extra mile to ensure you’re paying off the debt you’re most worried about, as well as keeping interest rates to a low. For example, using a decreasing term calculator could be a good thing to do next in a situation like this – it’s a form of life insurance that only pays out for a select term, and the payments get smaller and smaller over time. These are best used against mortgage repayments, thanks to the similar nature of the loan; if your mortgage budget is struggling right now, this is a good option to consider.
Dealing with a Spending Problem
Spending can be an addiction. Whenever you purchase something, your brain lights up and makes you feel happy, and you start to chase that high, and rack up your credit card debt the whole time.
What you need to do, if you’re someone who just can’t seem to stop spending money, is face the problem head on – acknowledge that spending makes you happy to an unhealthy degree, and that it’s time to do something about it.
Dealing with a spending addiction often means cutting back on the amount you spend, without compromising the way you live – it’s why extreme couponing exists, and it’s why we should always chase down a deal when something we love is on offer.
If you’re someone currently worried about your financial habits, and you’re desperate to make a change, make sure you keep the points above in mind.