Sick of maxing out your credit cards or laying awake at night wondering how you’re going to pay that bill? Financial stress can become all-consuming, and if you’re like many people, you may feel like you’ll never be able to dig yourself out of the financial hole.
It doesn’t have to be this way though. With some smart financial strategies, you can pay off your debt, increase your savings, and quit worrying about how you’ll pay the rent or mortgage.
Here are some top tips to help:
Build an emergency fund
Even if you can only put five dollars away each week, this will slowly start to add up. Look at the minimum you can afford to save every week, and consider a few ways you can begin to increase this amount. That way, when you have a sudden expense, you’ll be in a better place and may only need to take a small loan or put a small amount on your credit cards- instead of taking out a loan for all of it. Eventually, you won’t need to access credit at all and will be able to pay off these expenses with your savings.
Focus on credit cards
Credit card debt is one of the worst types of debt, and it can have a massive impact on your credit score. When you look at the interest rates on your credit cards, it’s easy to see why so many people are only able to make the minimum payments each month.
One of the best ways to get your finances sorted is to get yourself out of credit card debt. Look into low-interest loans which will allow you to pay off all your credit cards at once and focus on just one payment instead of juggling multiple cards. Another option is to look for interest-free deals on credit cards- some credit card companies will allow you to transfer your balance and pay zero interest for a few months. This is an excellent opportunity to pay off as much debt as you can.
Earn more money
This sounds obvious, but think about it: The more you increase your earning potential, the quicker you’ll pay off debt and be able to build an emergency fund. You have a few options here. First, you can ask your boss for a pay review. If it’s been some time since you’ve had a raise, now’s the time to begin to make your case and prove exactly why you’re so valuable to your company- and why they want to keep you around.
Another option is a part-time job or side-hustle. This may not sound like a great plan, but just a few months of working nights or weekends can allow you to get back on your feet financially.
If you’re hoping to get your finance sorted this year, be sure to try the above tips. Let me know your thoughts in the comments below!