We’re all aware of just how important having money can be. Without it, we can’t survive. When cash flow is tight, or you’re experiencing some form of the financial crisis, it can be extremely stressful. On the other hand, when money is regularly flowing in, life seems very peaceful and serene. That’s why having financial stability is so important. It takes the pressure right off you and leaves you mentally free to be able to enjoy your life.
In this article, we’ll take a look at some ways you can deal with financial difficulties, as well as some sound advice on finding financial stability in your life.
1. Seek Help From a Financial Advisor
A good financial advisor can help you out when it comes to sorting out your finances, creating household budgets, investments and residual income ideas. You may also receive advice on creating multiple sources of income, so you’re not totally reliant on a single income source.
Your advisor will also be able to point out areas where you can save money, cut back on your spending, or even let you know about certain government rebates you may not be aware of. Although consulting with an expert does come at a price, ultimately the amount you gain from experience will far outweigh the consulting fees.
2. Revise Your Spending Habits
Until you really think about what you spend money on daily, weekly and monthly, chances are you’ll have very little idea. A good way to get started is to make a list and write down all the things you spend money on each day. Likely you’ll be surprised by what’s on the list and will instantly recognise areas where you could cut back your spending and relieve the financial pressure valve a little.
Unless you have a photographic memory, without compiling this list, you’ll forget half the things you spend on. This exercise can be a real eye-opener for many people.
3. Consolidate Your Debts
This is a very popular option many people take in a bid to lower their overall monthly repayments when they have a variety of credit cards and loans. As an example, if you had 3 credit cards with interest rates at 15%, but you took out a personal loan at 12% and paid out those 3 cards, you’re essentially saving yourself 9% in interest. That can add up over a few years, so the savings to be had are quite considerable.
If you did pay off the balance of those 3 cards though, you would want to make sure you didn’t then rack up debt on them again. Otherwise, you’ll be paying the credit cards AND the new loan.
Debt consolidation is a fantastic way of getting a handle on your finances and well worth discussing with your bank manager or financial advisor.
4. Maybe a Small Loan Will Help See You Through?
Another option is a small loan from an independent lender like Sunshine Loans and similar lending institutions. You can borrow up to $2000 and have several months to pay the loan back at very low-interest rates.
While the loan amounts are not big, they are easy to repay, and a few thousand can often be enough money to carry you through until your financial situation improves.These loans are also great for self-employed people who might be waiting to be paid for some past work or need to purchase some business equipment. You can usually make the entire application online and receive the money on the same day once approved.
5. Follow a Strict Budget Until Your Finances Improve
Anyone who is struggling financially and wants to stabilise their financial position needs to write out a budget that they adhere to. Stability of any kind is usually due to following a system or a plan, and that’s really what a household budget is: It’s a set of spending guidelines to follow so your finances don’t get bent out of shape.
If you already have a budget in place, but your financial situation has taken a downturn, you’ll need to review your budget and make any necessary changes, so all priority items are covered.