Resolving old issues with debt and shoring up your finances are both necessary to get on the right path. Otherwise, the struggle will continue, and independence will remain a distant dream. Nobody wants that. Here are some suggestions to improve your financial standing in life.
Target Your Debts
Of the debts that you may have accumulated, credit cards are perhaps the most pernicious. Their high-interest rates and low minimum payments can leave you indebted for decades. And when not having spending under control, you may still be increasing the outstanding balances too.
If you’re wanting to turn your financial situation around to reorient it towards independence, then paying down debt is essential. Make a firm decision, agree to not add more to existing cards, and resolve to get serious about it.
Using an app to help pay off credit card debt is a good idea. The Tally app can provide a way to organize credit cards and not forget a payment ever again. This prevents extra fees. They also can calculate how much estimated interest you’ll save when paying extra beyond the minimum. You can find the Tally app here: https://www.meettally.com/.
Boost Your Income
To improve your financial standing, increasing your income is an important part of the equation.
Dealing with the Job
To increase your income on the job, you can either work some overtime, push towards getting promoted, or apply for another job within the same organization. You can also try to cast your net further to find a better-paying opportunity elsewhere.
It’s also possible to educate yourself to become more attractive to potential employers. However, this is more of a 3-5-year plan and may require you to go into debt to do so. Before deciding how to proceed with furthering your education, calculate a ROI on the choice. See how much you will have to pay out of pocket and compare this to possible salary increases in the future. There are also a ton of free and inexpensive online courses that will boost your career. So, the good news is that getting student loans is not the only option.
Work a Second Job
A second job is more likely to be something in the gig economy. Here people can perform specific tasks for companies or individuals for a price. It isn’t a second job, but it’ll still feel like one.
Working as a freelancer in the evenings and/or weekends is one possibility. It’s also possible to deliver food orders by bicycle, motorbike, or car. Driving for Uber or another ride-sharing service is another approach. Also, dog sitting on sites like Rover.com is a possibility for pet lovers too.
Bear in mind that just like with a job, you’re still selling your time for money. There’s only so much of that, so it restricts your total earnings. Also, in most cases, it won’t turn into a growing small business, as mostly you’re still working for others.
Create a Side Hustle
A side hustle is a small enterprise that you run yourself.
Any type of side hustle will require some startup capital, and likely won’t make much for a few months. The better ones are those that have potentially unlimited growth. These could eventually replace a full-time job if they make enough for you.
A Hard Look at Your Expenses
You may feel that your spending is the real problem. In which case, tackle the spending side of the ledger.
Financial Review 101
Get a better handle on what you’re spending every day, week, or month.
There are various ways to do that. These might include using a budget tracking financial app, writing down all expenses, or using a debit card to get receipts for all payments.
In most cases, there are ways to reduce your expenses once you’re aware of them. Because we mostly spend on autopilot, we commonly believe that we’re spending less or that items cost less than they do. Also, costs have risen considerably over the last couple of years, so price inflation may have been overlooked.
Reduce the Cost of Living
Make your daily living costs less than they presently are.
Reducing the quality, high-end brands, or quantity of our purchases all do wonders for reducing the cost of living.
Planning your weekly or monthly expenses and sticking to the budget is worthwhile. It’s eye-opening and can show where waste has crept into your financial life. Strip out expenses that don’t offer value to you. Also reduce or eliminate others where it’s possible to get a better deal.
Stay Mindful of Money
While you don’t need to look at your checking account every night, mindfulness on income, expenses, and your financial trajectory is extremely valuable.
For instance, if you have the intention to travel, buy a home, or pursue another long-held goal, you’ll need a plan that supports this. Setting financial targets, creating a plan for their achievement, and then staying on top of your financial picture is key to achieving them.
By keeping your eye on the prize, maximizing potential income sources, and reducing living expenses, it’s possible to improve your financial standing. It won’t happen overnight, but by putting a process in place, it’ll be possible to settle debts and increase your net worth over time.