Money matters are the most common stressors in our lives. We are either anxious that we don’t have enough money to buy or pay for something we need in the future, or that we cannot pay for something we had already enjoyed in the past. As a consequence, we don’t get to enjoy our present, bound to these concerns.
Rather than get drowned in your financial problems, take some time to reflect on what you are doing wrong with your money. Some people make a daily journal of their expenses to know what exactly happens with their cash flow. If you’re using your credit card for all of your transactions, it would be easier because you need to look at your billing statements.
Once you’ve identified the general direction of your money, do something about it. Here are some things you should be doing to breathe easier and not live from paycheck to paycheck.
First, clear up your past.
Assess your loans and plan your payment schedules.
At some point in your life, you might have had to use another credit card to pay off a loan. Then as time passed, you needed to buy something, but you still haven’t finished off your loans, nor had you paid in full your cards. So then you probably sought another creditor. It’s convenient to pay just the minimum amount every month, but over time, if you’re only paying for the interest rate, your principal debt will continue to nag you. The interest rate you are paying every month didn’t get you anything. You got whatever you bought with the principal amount. If you get the opportunity to pay off a loan in full, do so, even if it means you will have to tighten your belt for a month.
You can also lower your interest rates through debt consolidation. Get your mortgage calculated and see if it would benefit you to increase your monthly payments so you can pay it off earlier. Remember that the faster you can get rid of your loans, the sooner you can work on savings.
Prioritize payment of loans to expenses.
Control your consumption of electricity and water. Most of us are used to a wasteful lifestyle. We don’t bother to plug out our electrical appliances for the convenience of just switching them on when we need to use them. But even when not turned on, they consume energy, and this would reflect on your bills. If you maintain a garden, study the watering needs of your plants. A lot of plants don’t want to be watered regularly. Save your water, and it might also save your plants whose roots are sensitive to over-watering.
Find expenses you can share with neighbors or colleagues. Do you need to drive to your work? You might have officemates willing to carpool with you so you can split your fuel expenses. Is your child enrolled in music lessons? There might be someone who wants to join the class, so the tutor can lower the rate per student.
Once you’ve gotten control over your loans and expenses, plan for your future.
Invest in little but impactful businesses.
Invest in things you would need to maintain in the future. For example, you will always need to eat. But nowadays, finding cheap healthy food is difficult. Buying canned and processed food products are cheaper than getting fresh farm products. So why don’t you grow your food? Invest in a small vegetable garden in your backyard. In addition to saving on your food expenses, you will also get some microorganisms that can improve your mood.
When you clear your debts and have more money to spare, think about investing in a small farm. Even if you don’t produce for a large scale commercial operation, you can assure you will not go hungry.
Similarly, invest in healthy lifestyle products. There are small companies that offer franchising or small-time reselling opportunities. You can start from there and grow your business.
Try DIY solutions.
Instead of relying on a gardener to tend to your plants, do it yourself. If you want to free up some space in your kitchen or living room, instead of hiring a designer, plan it yourself and create the storage spaces you need. It can even be more creative and flexible because you can design it depending on your needs. Learn carpentry instead of paying to customize your furniture.
A more profitable plan is to learn a skill that you need to employ often and can be a potential side hustle. For example, you can learn about plumbing or maybe repairing appliances.
Money, as a worn statement goes, should only be a means to achieving the end. It should, therefore, not be the focus of your life. Don’t let your financial worries affect your enjoyment of the present.
Meta Title: Taking Control of Your Financial Situation
Meta Description: Financial problems can get the better of your days. Focus your efforts on getting out of debt. Learn about the things you should accomplish right away.