Thursday, April 22, 2021

6 Tips for Those Tough Financial Times


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No matter how good you are at managing your money, there is a good chance that you will go through at least one difficult financial time at some point in your life, and when that happens you need to be prepared, which is why we’ve put together some great tips for getting through those tough financial times as best you can.

1. Set up a budget

This is pretty much financial advice 101, and everyone should have a budget even when times are good, but it becomes even more important to create one when times are tough. Why? Because only when you know how much money you have coming in and going out can you see where you can cut back and make some savings.

2. Avoid using more credit

It can be so tempting to use your credit card more if you lost your employment or have a financial setback, but if you can avoid doing so, you really should because. Although it will help you get by in the short term, it will only ever make things worse in the long term as debts mount up and interest accrues. Explore other options like selling your home and downsizing or cashing in pensions instead, but think carefully before you act at all.

3. Try not to stress

It’s way easier said than done, we know, but if you can avoid stressing yourself out unnecessarily over your financial situation, you really should. I mean, if you can’t change a problem, there is absolutely no point upsetting yourself over it, and when you’re stressed, you won’t exactly be in the best frame of mind to come up with an action plan and get things back on track.

4. Get a side hustle

If you’re struggling financially, one of the best things you can do is find an extra source of money, and often a side hustle is the perfect solution, Side hustles tend to be fairly easy to set up and utilize skills you already have. From dog walking to freelance writing, there are so many ways to make money on the side that you should be able to find something that suits you. 

5. Pay your expensive debts first

Once you’ve covered essentials like your mortgage, food bills, and utilities, you should plow any spare money you have into paying off your highest interest debts first. Obviously, make minimum payments on all your debts, but any excess should go straight to that high debt. Once that’s paid off, do the same thing for the next highest and so on until you’re back on an even keel.

6. Get help

If you’re really struggling, seeking the help of a financial adviser, debt counselor or even a regular therapist may be a good idea., They can help you come up with solutions to your financial problems in the first instance, and hello you to deal with the stress and worry in the latter case.

Financial problems can be a real worry, but you can get through them, so stay positive, take action, and don’t worry about the stuff you can’t change.

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