Are your finances a source of stress? Struggling to keep up with your bills may impact your ability to focus on your work or maintain stability in your personal life. If money is a constant worry, these tips may help:
- Create a budget. List how much cash you have, how much you earn, what you owe, and what revolving bills are due each month. If you are paid on a regular schedule, make a list of when your bills typically arrive each month and allocate them to a specific paycheck (when possible). Factor a regular savings deposit into your monthly budget.
- Set priorities. If your budget doesn’t add up, it’s time to make some cuts. List all of the things you pay for each month and determine what you could live without. Cutting unnecessary spending may free up money that you could put toward savings or set aside for a vacation or big-ticket item.
- Get creative. If there are items sitting around your house unused, could you have a yard sale or sell them online? Other sources of extra income include setting up an online shop for a creative hobby. Even a few extra dollars a week will add up over time.
- Decrease debt. Debt is one of the biggest sources of money stress. If you owe money on credit cards or other loans, pay extra as often as possible to speed up the repayment process. A good rule is to first pay down unsecured debt (such as credit cards), starting with the account that has the highest interest rate. After paying off your credit cards, put extra money toward secure debt (such as a car loan).
- Look for deals. Coupons, discount codes, and apps that offer extra savings may help cut expenses. If an item you buy frequently is on sale, consider stocking up (within reason) to save money over time.
- Rethink your goals. Money stress often happens because we’re trying to do too much at once. If you are constantly overloaded, it may be time to review your goals and set priorities.
Source: Life Advantages