Whatever the macroeconomic indicators are saying, families are still finding it more challenging than ever before to get ahead and achieve financial security. While wages stagnate, living costs continue to increase. What’s more, in the wake of the Global Financial Crisis, families are struggling to access productive capital to invest in a brighter future. If you are one of the many people navigating troubled financial waters, you may find these tips below helpful:
Finding Finance
If your bank balance is looking anemic and unexpected bills are beginning to roll in, it’s time to consider a temporary cash injection. As many families are living paycheck to paycheck, the need to search for finance options becomes more urgent. However, many people still believe the only option is risky payday loans and lenders with predatory lending tactics. That couldn’t be further from the truth.
There are now ways to access small cash loans online with low interest rates from microfinance lenders. These loans are helpful for pulling you out of a financial hole, providing a temporary life ring while you get back on your feet.
Look At Your Finances
Many of us are so busy living and working that we very rarely take the time to sit down and find out what our current income and outgoings are. Look back over the past few months. Are you spending more than you’re earning? If so, what are you buying? Write down your income and the list of bills you pay on a regular basis. If there is money left over, you need to find out where that’s going and tighten your belt.
See a Budget Advisor
Not everyone is financially savvy, especially if you were brought up in a household that had plenty of disposable income. If you are living like you still have that same steady flow of cash even when you don’t, then it might be time to see a budget advisor. They can help you work out where to make cuts while providing education so you can pay off your bills in the most effective way possible.
Get Smart with Interest
Whether you’re paying off furniture on in-store finance or you use a credit card, you will find that you’re incurring a significant amount of interest over time. In fact, given that average interest rates on credit cards are over 16 per cent, you will surely be paying more than you think. If you are suffering from sleepless nights due to the sheer number of payments and mounting interest, then you need to make a change.
Lay out all your payments in order of the highest interest rate to the lowest. Then, factor in any deferred payments. The aim of doing this is to begin adding more money to your high-interest credit cards and less to those that feature low rates and can wait a little longer.
Get a Boarder
Mortgage payments can take a significant chunk of your paycheck, but there is a way to ease the burden. If you have an empty room in your house, you can utilize it by renting it out to a boarder. You can choose to include meals or not, and you can be selective with whom you let the room to. What’s more, you may even be entitled to a tax break by doing so.
While you may feel like you’re drowning in financial troubles, there is always a way out. Find a life ring in any of these five tips above.