Rather than sit back and wait for your financial situation to improve, there are things you can do to get your money back on track. Maybe you fear a financial emergency because you don’t have a savings account, or maybe you need a guide that discusses your insurance options.
Learning to live by these six money rules can give your personal finances a much-needed overhaul.
Don’t buy to impress others
If your friend bought a new house or a new car, this doesn’t mean you should go out and make the same purchase. Trying to keep up with your friends may feel good, but if you check your bank account or credit card statement and cringe, the joke’s on you.
The best thing you can do for your personal finances is live within your means. In other words, establish a budget – a realistic budget. Determine how much you can afford to spend on housing, transportation, food, etc., and be content with the things you have. You’re as wealthy as your lifestyle.
Pay off debt
Stop convincing yourself that debt is a way of life. There are many who live a relatively debt-free life, and you can be one of them. How can you achieve this? For starters, stop pulling out your charge card and adopt a cash-only attitude. Secondly, pay more than your credit card minimums each month. You can’t erase the past, but if you stick with a debt elimination plan, you can be debt-free in just a few years.
Don’t wait to save
Having consumer debt isn’t an excuse to put off saving. A savings account can help you weather a job loss, a medical expense, and other things that pop up. Paying down debt is important, but not at the expense of growing your savings account. Even if you can only set aside a little bit each pay period, something is better than nothing. As your debt decreases and your disposable income increases, gradually reduce how much you deposit in your savings account.
Sleep on purchases
To overcome impulse shopping, resolve to sleep on each and every purchase. In other words, if you see an item you like, don’t immediately buy the item. Go home, think over the purchase, and see how you feeling the next day. There’s a strong chance that once you leave the store, your desire for the item will diminish.
Buy life insurance
There’s no greater gift than protecting your family after your untimely death. A policy with SimplifiedIssueLifeInsurance.com can be that gift. Even if you have cash in savings, it probably isn’t enough to replace your income. And if it is, it may not offer years of protection, leaving your family to shoulder the burden.
Create multiple income streams
Don’t just rely on your full-time job for income. What are your interests? By turning a hobby into a side hustle, you can create extra income to pay off bills and beef up your savings account. Besides, there’s no such thing as true job security. Anyone can lose a job. But with a side hustle, you might be able to pay your bills until another full-time gig comes along.
There is no better time than the present to get serious about your money. No one’s asking you to be an expert, and you may make a few mistakes. However, some control over your finances is better than no control.
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