In uncertain times we live, managing personal finances could be a nightmare for many. But it doesn’t have to be so daunting.
Of course, the income we are making all these days has decreased. Many are even lost their jobs and are struggling to find another one. However, we will shed some light on the matter at the end and first only concentrate on the habits to acquire, presuming you already have or will soon find a stable income.
The importance of working on your financial education
There is no financial growth without financial education. According to many successful investors, you should not invest in a market and assets which you do not understand. But how and where to get started?
No worries, you don’t need to go to the University or pay for some of the expensive courses in finance. You can get all the necessary and relevant information by reading blogs of reputable authors in the financial sector or by reading books dedicated to investment and finances.
Save and/or invest your financial “surplus.”
Every month, get into the habit of putting 10 to 15% of your income in a savings account.
Once you reach a substantial amount, choose the investment (s) best suited to your objectives. And search for the best advice and educational materials!
For instance, the crypto sector and foreign currency trading are experiencing a tremendous increase in trading and investment volumes, not surprising at all since many have made a fortune speculating on prices.
If these investment sectors are appealing to you, doing due diligence and reading a broker review is your ticket to the secure start of the investment journey.
Reduce your expenses
Watch your spending: Consider whether you want to buy out of want, obligation, or need. And act accordingly.
Buy second-hand (declawed clothes, furniture, books, etc.): consignments, second-hand shops, flea markets … are real gold mines! Moreover, it preserves our planet!
Do you have a mortgage and find it costing you too much? Renegotiate it to find a solution more suited to your needs, both in terms of the number of monthly payments and duration
If you have too many credits, a financial situation too complex to manage, and monthly payments too large for your budget, think of the repurchase of credit. This very simple operation can hold good surprises.
Paying off credit card debt
Paying off the minimum amount on your credit card balances is no reason to celebrate. If you really want to get out of debt, you will need to get into the habit of paying more than what’s needed.
If getting out of debt is a meaningful goal for you, you need to push it a little deeper and create a debt repayment plan.
A goal without a plan is just a wish; wishing your debts were gone is not going to be enough. Look at your budget to be aware of how much money you have left after all of your spendings.
Pay off all your debts on time as well. It will significantly affect your credit rating, which will need to remain intact if you want to take advantage of your credit rating for major purchases, such as a house or a car.
Increase your income with the online gigs
If you had the misfortune of being laid off, consider finding a freelance gig. The internet is abundant in these kinds of jobs. In just a couple of months, you can start earning a decent amount to cover daily living expenses and save for investments or emergency funds.
No matter your expertise or level of experience, you can find jobs ranging from data entry, administrative tasks, tutoring foreign languages, programming, and web design jobs. And the list is endless. However, you will need to dedicate some time to research the appropriate platforms for your specific needs and skills.