Manage Family’s Finances
Before 2017 ended, the US saw a $193 billion increase in its consumer debt, bringing the total amount to a whopping $13.15 trillion. To make matters worse, a lot of Americans seem to be struggling to make the necessary payments. But don’t lose hope just yet. With a little planning and some careful goal-setting, you should still be able to achieve true financial security even in these trying times.
1: Reduce Unnecessary Spending
The first step to getting back on track financially is to cut back on pointless expenses. Take coffee, for example. Imagine how much money you could save per month if you just made it at home instead of paying for an overpriced cup at a fancy cafe. The same goes for bottled water. If you just brought your own container and simply topped up at work, drinking fountains or even food courts, you’ll never have to pay for something that’s readily available (and for free) anyway.
2: Plan to Save
The trick to building your savings is putting money away first and then spending what’s left instead of the other way around. By doing so, you effectively put a cap on the amount you can spend each month. But how much exactly should you put away? Well, a lot of people swear by the 50/20/30 rule of handling money, but feel free to tweak the numbers based on your own needs and capability.
3: Start Investing
Investing in this case doesn’t just mean putting money in stocks, starting a business or buying real estate. Instead, it refers to the general act of putting money into anything that can yield returns either in the form of actual earnings or savings. Take solar panels for your home, for example. Aside from reducing your energy bill, they can also make you some extra cash in the form of tax breaks and rebates.
Don’t worry, though, if you don’t have enough cash to invest right now. It’s perfectly okay to take out a loan in this case because the return on your investment will more than pay for whatever you put out in the long run. So, just go ahead and talk to your bank or check out your favorite peer-to-peer (P2P) lending platform and work out a deal that perfectly suits your needs. Keep in mind that the sooner you make your move, the sooner the returns will come.
4: Just Keep at it
The fourth and final step is only here to remind you that financial security doesn’t come overnight. It takes a solid strategy and a strong commitment to implementing it. The good news, however, is that the rewards you reap will just keep on getting as time goes by.
Featured Image Source: Flickr
