”The ABCs Of Getting Your Finances Back On Track” is a collaborative post and includes affiliate links. Please see the disclosure page for more information. Disclaimer – always verify financial information with a professional and follow all laws for your location.
If you’ve lost your way on a financial front due to the impacts of COVID-19, you’re not alone. Millions of people find themselves facing challenges that they would have never envisaged 12 months ago. Sadly, the frequency of this issue offers very little comfort. The only thing that will make you feel better is finding a return to financial stability.
Even if it feels like Mission Impossible right now, you can achieve this goal. In fact, it’s as easy as remembering your ABCs. Here’s all you need to know.
The only thing that will stop you from getting your finances back on track is the reluctance to accept the situation. The sooner you acknowledge your problems, the sooner you can set about finding a solution to them. It also allows you to seek the right support with full transparency.
Prioritizing the right aspects of your financial health is essential. Your debts may have been indirectly caused by a range of issues. Ranging from government money creation strategies to COVID-19 job losses to illness and more! Either way, knowing the reasons for your debt, as well as the severity, will help you to know the steps you’ll need to take to get your finances back on track.
Debt relief can take many forms from consolidation to discharging. Either way, the ability to gain a fresh start will give you a shot at rescuing the situation. Be sure to speak with a financial counselor regarding any time you try to for debt forgiveness or discharging. This could do more harm than good for your financial situation in the long run especially your credit score.
If you are serious about improving your financial situation, you need to implement new tactics. After all, if you follow the same patterns, you can only ever expect to see the same results. While money situations are complex, the simple equation is clear. Spend less than you earn to see improvements in your situation. Do what you can to bring the price of the things that you’re buying down, whether you buy promo codes or seek out deals wherever you can. Bringing down the cost of the things you buy can be just as useful as cutting back entirely.
These family hacks to save money in daily life should generate quick improvements. This can be followed by ideas like losing unused gym memberships or investing in greener home tech. The combination of short-term and long-term savings will put your finances on a far better trajectory.
Most importantly, you need to record your spending habits. When you can see the ongoing problems in action, you will be far more likely to make the necessary changes. Or else, your finances will suffer because you will continue to make stupid spending mistakes because you might not ever realize that you are doing this.
Your financial health isn’t only influenced by bank balances. Plenty of people borrow money from time to time. Whether it’s to buy a house, a car, or take out a loan doesn’t matter. A good credit history unlocks the door to brighter financial opportunities. This means more agreeable lending terms for future borrowings.
A conscious effort to boost your credit score can lead to significant improvements in a fairly short space of time. In fact, you could notice major transformations within a matter of months. If you are currently precluded from most deals, why not look at prepaid credit cards? They’re a great starter.
Of course, you can look to co-signers too. However, the ability to stand on your own two feet without the support of friends and family is a wonderful thing. It’s a true symbol of financial stability. Plus, as an avid Judge Judy fan, I’ve seen a fair share of episodes where relationships have been ruined because one person will co-sign for another and, you guessed it, the original person ends up not paying on the loan. What a mess. Your best bet is to never co-sign on a loan or ask for someone to co-sign. If you can’t afford to pay cash for something, you might not actually need it as bad as you think you do.
These are simplified versions of steps for getting your finances back on track. If you are looking for more indepth ideas try out websites like Compound Confidence to learn how to be debt free and how to manage your budget.
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