According to a recent study, “70% of Americans feel financially stressed” right now. This is unsurprising, given the ongoing cost of living crisis. However, there are many other reasons why financial stress may be a real problem for many adults. For example, may be trying to pull money together to start your own business or trying to tackle student debt.
In this article, we’ll share Four steps that you can follow to help improve your financial situation in no time!
Table of Contents
Learn all about budgeting
Learning how to budget effectively is one of the easiest ways to become financially stable. After all, when budgeting, you naturally become more aware of your spending habits – the good and the bad. For example, you may not realize quite how much money you are spending on takeout coffees until you see the figure eating into your budget! However, on the plus side, this task can also show you areas in which you’re excelling, which could give you greater peace of mind moving forward.
It’s often advised that when trying to budget for the first time, you use the 50:30:20 rule. Here, your budget is divided into three categories: needs, wants, and savings.
50% of your budget goes to needs. This could include:
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- Rent
- Mortgage Payments
- Car insurance
- Life insurance
- Grocery bills
- Utility bills
- Transport costs
30% of your budget goes to wants. This could include non-essential expenses, such as:
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- Dining out
- Netflix/other subscriptions
- Vacations
- Nights out
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20% of your budget goes to savings.
Try to be a little more thrifty
Becoming a little more thrifty can also help you to save more money, as it means you’re able to stretch your paycheck a little bit further each month. One of the easiest ways to cut back on expenses without going without things you need is by using price comparison websites to see if you could get a better deal for common expenses elsewhere. For example, you can use them to compare the price of utility bills, home insurance, and more.
However, instead of switching to the new provider right away, reach out to your current provider first. Let them know you’ve been offered a better price elsewhere, and they may offer a better offer to retain your custom, which could mean you are saving even more money.
Make sure you know when to ask for help
Many people choose to struggle in silence when it comes to complicated financial issues. For example, they may feel embarrassed reaching out to friends who are in a more comfortable position because they do not want to feel judged. However, it’s crucial that you know when to ask for help so that you can begin to work your way out of this situation.
For example, if you need to file for bankruptcy, you should reach out to a Chapter 11 Attorneys DFW. They will be able to explain the bankruptcy process to you in detail so that you better understand the situation and can make an informed decision on how you’d like to proceed.
Set up a savings account
Did you know that more than one in ten Americans do not have any savings or a savings account? In fact, many people choose to keep their savings in their current account – and while this may make it seem like you have more money to play around with, it also means you’re more likely to dip into your savings without realizing it. It also means you can trick yourself into thinking you’re saving money when this isn’t really the case.
However, having a designated savings account that you put money into each month (i.e., on payday) means that this money is stored away safely. Furthermore, you can put a lock on your savings account, which makes it harder to withdraw money.
Final Thoughts
While we all deal with financial struggles from time to time, it’s important that we do not try to push them under the rug. While it may seem easier to ignore the issue and hope it will improve on its own, this often isn’t the case – we need to be proactive when it comes to bolstering our finances.
As such, when you are more realistic about your situation, you’re more likely to find a solution that works for you – whether it be one of those listed above or a different approach entirely. Either way, the sooner you begin to tackle this issue head-on, the sooner your finances will be back in order once again.