Many people struggle with their finances. Either they are on a low income, or have a lot of debt, but whichever the reason it can bring a lot of stress with the financial problems. There are things you can do to try and make it a bit easier, and here we will give you some of the tips the experts advise.
Dump The Credit Cards
Credit cards are the most expensive way of borrowing money, which is basically what you do every time you purchase something on one. They always advertise the monthly interest rate, but when that is converted to an annual rate it is often 24% or more. A bank loan would be a much cheaper option, and they are a set payment for a fixed term.
It can be difficult learning to live without a credit card, and havi8ng to save for the things that you want. At the end of the day though, it is a lot less stressful and you know when you are buying something it is your own money you are spending.
Calculate What You Can Afford
Make a list of everything you have to pay our every month and compare that to your income. If there is a shortfall, you may have a bigger problem than you first thought and you may need to either speak to your creditors, or try to earn some extra money in some other way. If debts are part of the monthly outgoings, sometimes your creditors will let you reduce the payments for a while.
If you have an excess of income over outgoings, you may want to look at several possibilities. You should, without a doubt, start saving an emergency fund that never gets touched. Then there are other possibilities, such as do you need to replace your road vehicle? If so, before you set your heart on a particular car, take a look at a vehicle loan calculator to see how much you can afford. Do you need a loan? Look carefully at the interest rates and repayments before you go ahead and take one out.
Have A Plan
Have a plan for your financial future. It does not matter if that is to rid yourself of debt, to invest for your retirement or to save for some special event like a wedding or a dream holiday. Having a plan of how to achieve what you want to do will make it far more likely to happen.
If you have trouble doing this yourself, approach a financial advisor. They legally can only give you what they consider to be the best advice, and they are all highly trained for doing just that.
It always feels like some people are brilliant at managing their financial affairs, and others are not so good. In reality, anyone can learn how to be savvy about money, but it can just be a hard lesson to learn. For most people though, once they have been through it once and come out the other side in a much better financial situation, they will never let it happen to them again.