Do you ever worry about your money situation? According to the latest polls, this is one of the most common concerns for the typical individual. No one wants to find themselves struggling with money. Despite this, issues with debt and problems with finances are quite common. Indeed, one report revealed that 75% of the country will die in some kind of debt. If you think that’s a rather bleak statistic, we quite agree. This is why you need to think about how to keep your finances healthy and stay in the green. There are a few possibilities to consider here.
Get On The Housing Market
A lot of people are worried that going on the housing market too quickly could cause them to end up in debt. If you are worried about the potential danger here, you need to make sure that you are getting the right mortgage deal.
To do that, you need to ensure that you are saving the largest deposit possible. Anything around 20% is certainly recommended here. With a 20% deposit, you will be able to access some of the better mortgage deals that are around. It can also be worth speaking to a financial broker. They are usually able to access deals that are behind gates and off-limits to you.
By purchasing a home, you will be providing yourself with some level of security. You will be giving yourself land that you own and essentially capital. This can be useful if you do ever need to borrow money, which brings us neatly to the next top tip.
Keep Your Debts Clear
Borrowing is a significant part of life. Most people will never be able to afford to buy their first home without borrowing unless they have a sizeable nest egg from parents or relatives. As well as this, borrowing can be useful. It can ensure that you are able to access purchases that might be necessary and you otherwise wouldn’t be able to afford.
For instance, you might require a new boiler. Depending on the boiler you need, you could spend as much as 10,000 on a new model. This will be worth it in the long term because you’ll save a lot over an extended period. However, it doesn’t change the heavy cost that you’ll need to contend with.
The trick then is not to avoid borrowing money completely but instead to make sure that your borrows are under control. The mistake people often make is borrowing a lot or even just a little more than they can actually afford.
It’s always important that you explore interest rates on loans and dodge options that have hidden costs.
As for more typical borrows, you need to treat the money you owe like any other bill. Pay it back monthly on time and never put it off because if you do you’ll be putting it off forever.
You may also want to explore credit cards that actually reward you for borrowing. While this might sound like a concept that’s too good to be true, they certainly exist. You can save money on your food shopping as well as a variety of other expenses.
Always Have A Side Hustle
Things go wrong all the time and this is certainly true if you’re thinking in terms of your career. You need to make sure that if you do end up in a situation where you are unable to work, you will survive. Experts actually suggest that everyone regardless of your financial situation should have a second income.
The benefit of doing this is that if one goes down, you can rely on the other. You can also provide yourself with an extra cushion of cash. You can use this cash however you like from spending it purely on savings to using it for luxuries and expenses outside of your typical costs.
There are various possibilities for side hustles. For instance, you might be academic. If that’s the case, then the best option is always going to be something like tutoring. These days, this possibility is available online. With tutoring, you can use your advanced knowledge to earn a little more through the week. Often, you won’t have to spend a lot of time to make money.
Alternatively, if you’re comfortable on a computer or love to write you could consider blogging and freelancing. It doesn’t take that much effort to break out as a freelancer and start to gain the attention you need to keep things profitable.
The right side hustle is one of the key ingredients when you’re trying to figure out how to retire early. It ensures that you have the money you need to fill your pension pot without putting a massive amount of pressure on your lifestyle. You can still go on holiday while continuing to save a comfortable amount.
Don’t Live Beyond Your Means
It’s important that you aren’t spending more than you can afford. This doesn’t mean that you should never borrow. As already discussed, borrowing can be a useful trick. Instead, this refers to a budget. Borrowing will make sense if it fits into a financial plan that works for you.
However, you do need to make sure that you have a budget in place. To do this, think about your total level of income including any side hustles that you might already have. Then consider all your expected monthly outgoings. This could be anything from the home bills to the car insurance and anything else that you find in your bank account. Subscriptions fit here too as does tax if you are responsible for handling this yourself.
Once you figure out all the costs, you subtract it from the incoming balances. The amount left over is your total budget. A portion of this, usually close to half, should be placed in savings. The rest can be spent on luxuries. When most people do this they often find there’s a lot less than they imagined.
You will need to figure out how to cut the costs to ensure that you can fit in all the luxuries that you are already used to.
Learn To Live On Less
That’s why our final tip is to figure out the concept of frugal living. This doesn’t mean that you have to be stingy and start living like Scrooge. On the contrary, you can still comfortably spend as much as you like. You just need to save in areas that are going to have an impact but that is not going to alter your lifestyle. An example of this would perhaps be your energy bills.
No one wants to spend a fortune on energy and it’s easy to cut back. For instance, you can think about exploring greener tech for your home. This is a great option and will ensure that you are able to benefit while saving at the same time. It’s always the latest tech that’s going to save you the greatest level of money on your bills. So, you could be better with a new Macbook rather than saving money on a computer worth 200. It sounds counterproductive but spending more could help you save in the long term.
We hope you use these ideas to fix your own finances and ensure that you are keeping the situation under control. If you keep in the green and stay out of debt, you will gain numerous benefits. From an early retirement to the avoidance of unnecessary risk, this option is certainly worth exploring.
Plan Everything Out
When you have a big plan projected in front of you, it makes everything so much easier to deal with. This idea is important in regards to every aspect of life, but it’s especially poignant when it comes to your finances. A few silly mistakes could leave you in hot water – depths that could take a long time to break out of. If you have an idea of what your finances will look like over the next year or so, then you’ll be able to follow along with a lot more ease. When it’s all stored in your mind, mistakes are more likely to be made. This whole idea could involve a pen or paper, or you could even use software in order to track everything. Particular accounting software, spreadsheets, or even a 15 year mortgage calculator could do the trick for you. You’ll by no means have everything handed to you on a plate, but you’ll have a better chance of being financially stable when you have a roadmap alongside you.
CANDY TAI is a wife to David and mom of 5 with a degree in Communications. She's a native Texan (Hook 'Em Horns!) who's been making her home in the Kansas City metro area for nearly 15 years. She loves being able to shuffle her kids from their various sports activities, piano lessons, and school activities. She enjoys fashion, beauty, reality TV, and moviegoing.