Financial struggles can seem like a problem that just won’t go away. Because money affects every part of life, it has to be constantly managed. Having the right attitude and planning ahead can help you stop worrying about money and allow you to relax more and be proud of your financial accomplishments. The key is to think ahead and know which measures to take to be responsible in your spending and save accordingly. Here are some tips as to how you can go about doing this.
HOUSEHOLD BUDGETING
Budgets help you reach your full potential when it comes to spending efficiently and responsibly. Without having a budget set in place, you probably won’t have a clear idea of where all of your money is going and why you’re overspending on things. According to CNN, there are generally three steps involved with establishing a budget:
- Figure out your current spending habits
- Analyze this behavior and set financial goals for the future
- Keep track of your spending to make sure you’re adhering to the plan
If you think creating a budget is a huge hassle, you’re not alone. The creation and upkeep can get tiresome, but it can help immensely. The Internet provides a wide range of tools you can use to complement or even create your budget. For example, mint.com is a free service that helps you keep track of your finances in one place.
When you get down to budgeting, consider how you’ve been spending money and how you want that to change. What are your priorities? Do you want more spending money? Do you need to pay off debt? Split your budget into fixed expenses and discretionary ones. This will allow you to see which sources of spending can be adjusted to suit your goals.
LIVING FRUGALLY
Being frugal doesn’t necessarily mean you’re going to be making a ton of sacrifices. A lot of the time you can be getting the same product or service for a cheaper price if you knew some tips. Keeping track of coupons can allow you to buy the food you’d normally get at a much better price.
Check out guides like this one for some hints on how to grocery shop and save money, or use services like Amazon Subscribe & Save to get food and products at a lower cost (and delivered to you!).
Even the Federal Trade Commission has a list called 66 Ways to Save Money it offers online for consumers. If it’s too overwhelming to be constantly looking for deals, pinpoint problem areas in your spending and use frugal tips to cut back. There are online message boards where others can support you or give you advice, like the Frugal subreddit or Frugal Mom Forums.
SAVING MONEY
Once you’ve gotten your fixed expenses and spending money all figured out, you can use these cutbacks to alleviate other financial problems like debt. If you need to pay off credit cards, repay student loans, or take care of any other financial obligations, start working on it now.
But there are other reasons to save. Bankrate.com lists 9 reasons to save money, including your future retirement and the possibility of a financial emergency arising. Think about your priorities and save accordingly.
MSN suggests putting money you’ve decided not to spend when you’re out at the mall or the grocery store into your savings. Passing up on that tub of ice cream isn’t saving if you don’t actually save it. There are even apps now that could encourage saving, like the PriceCheck&Save app that allows users to browse various prices of items but also features a button that says, “Save to 401(k)” as an alternative to buying.
KNOWING YOUR OPTIONS
Sometimes, though, an incident comes up, and you don’t have the time to gradually save up money. If you lost a job, have to pay medical bills, or are in some other financial predicament, it’s not easy to just gather up all of the cash you need. So what can you do?
Assuming you don’t have an emergency fund, a few of your options include asking a loved one to lend you money, paying for whatever you need on credit, or taking out a payday loan. You might not like having to owe and pay back money, but if it’s your only option, think about the routes you can take.
If a family member or friend can’t help you out, or it’s just too much money to ask for, you might start thinking about borrowing. Payday loans can work because they’re short term, and you can repay the amount taken out with the money from your next paycheck. This should only be used in emergencies, though.
CONCLUSION
It might be difficult to get your finances in order, but the work you put in will definitely pay off when you’re less stressed about what you’re spending your money on. It’s important to save up money for the future and for emergencies, so start planning now so you can gradually build up good savings.
It’s not hard to imagine someone you know who is like Katrina. She’s raising two kids on her own. She earns a paycheck and does the best she can to cover all her expenses. However, she has had some emergencies crop up from time to time. What mother hasn’t experienced the late night trip to urgent care with a sick child, or a car that blows a gasket right before payday? Katrina has used short-term loans successfully to make her paychecks go further in a crisis situation or to cover unexpected expenses. Single moms like Katrina may find online payday loans especially convenient because they can apply for a loan without loading up the kids and burning gas to get to a brick-and-mortar lender.
When all heck breaks loose, you find out who your true friends are. Larry found out the hard way that he had very few options when he was facing a major cash crunch. He turned to a payday lender for a fast infusion of money. Instead of a hassle, he went through a process that was easy and discreet. He recognizes that such a convenient loan came with terms that are meant to offset the lender’s risk, but he notes that borrowers reap great benefits from having access to quick cash—a totally worthwhile arrangement. In his experience, payday lenders are like friends with a sizeable pile of cash who are there when you need them. Like Larry, many people find short term loans are an excellent choice when they’re short on money, time, credit, and friends who can or will assist them.
Honestly, is there anything worse than being late on your bills and incurring a late fee? Obviously, you were late because money is tight. The last thing you need is to owe more money. Penalty fees are a lot like getting gum stuck in your hair. The more you have to hassle with them, the bigger the mess becomes. And with the sluggish economy, more people are finding themselves needing payday loans to avoid racking up hefty penalty fees. Jeremy of San Jose found himself paying a steady stream of overdraft and other fees from his bank. Getting a payday loan helped him get those fees out of his hair, so to speak, and catch up on his finances. He says he will turn to short-term loans in the future, if he once again gets behind on bank fees.
Holidays, anniversaries, and birthdays are joyful times when you want to show your love for others by giving them special gifts. Like Barbara in Oklahoma, many people turn to online payday loans so that they can purchase presents for family and friends. Barbara directed her loan toward Christmas gifts for her daughter. It’s hard to imagine Christmas morning without the wonderment of a child opening packages next to a beautifully-lit tree. Payday loans can help your holiday or special occasion live up to the picture-perfect image dancing around in your head.
Those wild years when you ran up your credit card bills or took out unwieldy loans from banks recently caught up with you. Now, you’ve seen the error of your ways and want to make a change. That’s what happened to Michelle. She found herself struggling for more than a year to stay on top of her bills at a time when she was also trying to rebuild her credit score. Through short-term borrowing, Michelle reached her goals much sooner than she anticipated. Payday loans can be a bridge that makes it easier and faster to get across the debt pit.
Justin had to shop around before he could find a short-term lender that was willing to extend him a loan. His troubles stemmed from having many overdraft fees on his checking account. With a sense of panic rising, he finally secured a loan with an online company. He notes that once he found a company willing to show him some love and lend him money, he not only paid off the initial loan, but borrowed subsequent amounts of money and paid off the loans every time. He was going through this process while hoping for a home equity loan. Later, when Justin and his wife had a baby, their family budget got stretched to the brink. He was able to borrow $1,000 because of his history of paying off his previous loans.
