Are you tired of going from one money issue to another? It is time to take a more permanent approach to solving these problems once and for all. Maybe it is becoming a pattern whereby you succeed in fixing one financial difficulty only to get a new one waiting for you immediately.
Fixing an issue that has to do with money may be easier than taking practical steps to live a life of financial comfort that is free of financial difficulty. Some people live all their lives trying to pay accumulated debt and still die without achieving it. Unfortunately for their families, these debts are inherited instead of assets.
Many families today lose their home because at the time of a death of a spouse or parent, creditors begin to appear from every corner demanding to be paid for debts which the family members never knew existed. Though it may seem like you are trying to solve these issues but not making any headway, don’t panic because even if it seems unending, there are some practical things you can do continuously to solve them without stress. This is true, especially if you can start now without allowing it to grow out of hand.
Let’s examine few things you can do to solve your money issues.
• Create a personal budget. Most money issues we have are often caused by our inability to create a budget and abide by it. Without a budget, you cannot keep track of how much money you make every month and where you spend all your money. If you want to start, calculate all you spent in a month under different areas and use this as your basic budget. Creating this budget will help you find a place for every dollar you make and as such, you will find it easy to save more because savings will also have a place as part of your expenses.
• Keep a track of your expenses. After creating your budget, the next thing is to track all you’re spending. This may not be easy but it will help you to abide by the budget plans and not to spend more than what you have budgeted in each category. You can spend on cash alone whereby you may put the cash for each category in an envelope and stop spending as soon as you run out of money for that particular group. If this is hard, you can use a budget-tracking software and make sure to check every transaction at the end of each day.
• Adjust when necessary. You made the budget yourself so it should be easy to adjust it as you use it. You may find ways to cut down cost on one category in order to supplement another category. If you mistakenly spend more than you budgeted for in one category, you have to get a little extra from another category and make sure it is not from your savings percentage. This should not be reduced but rather increased if possible. For instance, if you budgeted $200 for your groceries and spent more than that, you should be able to get the extra from maybe the $50 you kept aside for entertainment.
• Take care of old debts. In order for your budget to work, make sure you have paid off all your old debt. Develop a debt repayment plan that will help you know the total debt you owe and how you will strike them all out. Make a list of all your debts from the smallest to the biggest. As you finish each one, move to the next one and add up the portion from the last debt you have paid off. This will make things faster and easier.
• Make early payments. After paying off your debts, try to become current in all your debts. Don’t allow your payments to be late in order to avoid extra costs as a result. For instance, pay your rent, utility bills and credit card debts as they become due. If you pay off your debts and incur new ones, the circle begins again and it wouldn’t be encouraging at all.
• Drop your credit cards. Even though you have one, use it less and less everyday till you get used to not using them so often. If you are finding it hard to reduce the frequency of your usage, try dropping them at home. Carry some cash for the day and limit your spending to the available money on hand. If you can reduce the use of your credit card, the debt from it will be reduced and you will be on track to solving your money issues.
• Start making contributions to your 401k(s). Many people ignore this option till the last moment. Instead of not contributing at all, start from 5% and increase after you get yourself detangled from all old debts so you can breathe easily.
• Create an emergency fund. This will help out on rainy days when you don’t have any other place to go to. Allocate a portion of your earnings to your emergency fund. Don’t spend all the dollars you make without putting some away for emergency situations.
Money issues can leave you miserable and unhappy all the days of your life. Start taking measures today in order to solve them for if and when they arise.