We all have experienced hard times regarding our finances, but there are some certain tips that can help you overcome these challenges.
Some of which are:
1. Assess your financial situation. Get a small notebook and write down your income and your expenses for the whole month. Your expenses could include utility bills, grocery, gas for your car,car loan, and so on. Make sure that you include only your important expenses. Make sure that your income is bigger than your expenses.
2. No matter how many expenses you have, make sure that you include your savings in your computation. Always save at least ten percent from your salary. Look at it as one of your expenses.
3. Consider debt consolidation. If you have several small debts from different banks or lenders, you should consider paying them off by getting a personal loan. You can use the cash that you have borrowed to pay off these small debts so that you only need to pay one debt from one lender.
4. Try to live below your means. You might be surprised why some people who do not earn a lot can afford a luxurious lifestyle,this is because they live above their means which ultimately leads them to bankruptcy.Try to cut back on your weekly shopping sprees and avoid eating out all the time. Just imagine the cash that you will save if you eat at home and do other inexpensive yet fun activities.
5. Stick to your budget as much as you can. That clearance sale at the store might be tempting but try to think about your more important expenses. To avoid feeling deprived, you should reward yourself from time to time. Just remember not to splurge.
6. Let your partner, family, or friends know about your new financial program. If they are in the know, it would be easier to avoid overspending since you have your loved ones full support.
7. If you think your salary is not enough to cover your expenses, try to come up with a sideline that can add up to your monthly income. You can sell things online or you can offer your talents and services on weekends. You do not need to quit your regular job to start a lucrative business.
8. Be prepared with financial crises. Emergency expenses like hospital bills, car accident expenses, or even disaster expenses should be taken into consideration. Make sure that you, your family, and your properties are insured. Financial crises also include the on which the world has experienced in the late 2000s where a lot of people all over the world,lost their jobs.
9. Quit your bad habits. Smoking and drinking alcohol are not only bad for your health. They are also bad for your wallet. If you stop smoking and drinking, you will end up a healthier, happier, and richer person.
10. Finally, if you think you cannot recover from your financial problem, you have to seek the help of a professional. You can go to a financial counsellor who can show you the way to financial success one small step at a time.
Olawale Abdulkadir is a student and writer with a passion for motivating people.