Struggling to manage your finances and not sure where to start?
While there is no 'quick fix' when it comes to repairing your financial health, there are some simple steps you can take this week to help you get on the path to financial stability.
Make a budget and stick to it.
Are your finances in disarray? Do you need help managing and sorting out your financial situation? The first place to start is putting together a budget.
A budget will allow you to track how much money comes in each month and how much of that money is spent on basic expenses, personal needs, savings, and investments.
Make sure to list all of your income sources, expenses, and debt, then create a plan on how you can save money and pay off debt.
Creating a budget is a great way to get control of your finances.
Sticking to a budget will help you prioritize where your money goes, alleviate stress, and provide a clear path to changing your financial future.
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Negotiate better rates on bills and debts.
Another way to save money and get control of your finances is to negotiate better rates on bills and debts.
Call service providers, creditors, and lenders, such as credit card companies, cell phone providers, or utilities, and ask for lower rates.
These companies want customers like you to stick around, so they may be willing to work with you on reducing your bills and payments.
So don’t hesitate to negotiate with them—your wallet will thank you later!
Reduce Monthly Bills
Look for things like streaming services, gym membership, or other recreational activities you can do without or replace with lower-cost alternatives.
Identify all the regular expenses you are paying each month, review your receipts and bank statements, and determine what you truly need.
You can negotiate lower interest on your credit card and car payments. Cut back on your electricity bills by choosing more energy-efficient appliances if you can.
Getting creative when finding ways to lower your spending will make all the difference!
Reevaluate insurance policies.
Insurance policies may be a yearly purchase that you overlook, but it’s important to evaluate your needs annually.
Check for any changes in your life or new offers from insurance companies that would benefit you more.
You may find that you can get the coverage you need for a lower cost than before.
In addition, if you've dropped certain activities, or stopped driving at certain times of the day or night, take time to look at how these changes have impacted your insurance rates and what kind of discounts might apply to your premiums.
Limit or Stop Eating Out
Put an end to your excessive eating-out habit.
Treat yourself to an occasional nice restaurant meal, but making homemade meals and taking lunch from home instead of eating out can help you significantly.
If you can't stop completely, try limiting your time eating out by cooking at home at least once a week and taking your lunches to work instead of eating out daily.
This simple change can save you as much as $50,000 over the course of your career!
Cancel Cable
Fixing your finances can be as simple as changing how you consume entertainment.
Consider cutting cable from your life and instead embracing streaming services such as Netflix, Hulu, or Amazon Prime.
These services will still provide you with quality entertainment for a fraction of the cost of cable.
By making this simple switch, you can start to make progress on fixing your finances quickly!
Create an emergency fund.
With all the work you've done from the previous steps, you'll have money left over to start your emergency fund.
While there is no definite rule or amount on how much you should have in your emergency fund a good principle to follow is about three to six months' worth of expenses.
This way, if there’s an unexpected expense or loss of income, you’ll have funds available to help manage costs until things improve.
Having an emergency fund also helps you feel more secure financially, reducing stress and providing peace of mind.
Major Take Away
So there is no quick fix when it comes to fixing your finances.
However, following the suggestions in this article will get you results in a week's time.
By eliminating nonessentials from your budget, you can free up funds for more important needs or financial goals.