Achieving Financial Stability

Life has gotten tougher over the last few years. Many people live paycheck to paycheck, struggling even with their basic needs. Many go into debt just to put food on their table.

That being said, it doesn’t have to be this way. There are some ways to achieve financial stability, even during rough times.

Don’t be afraid to let certain companies know. If you have loans out, such as a mortgage or your car loan, you may want to talk to your lenders. As more and more people are struggling to make ends meet, they are willing to work with you, as long as you don’t wait!

You may be able to skip a payment or two, which could really make a difference in your financial stability! Some will work with you on the late fees.

This includes any credit cards that you may be struggling to pay. If you have a credit card (or two) with a high balance, they may be willing to work with you in order to keep your business. They may offer you a payment plan with less interest, as long as you continue to make payments.

Cut back on the things that you don’t need. This is the time to make some tough decisions, especially if you want to see some changes. You may try to cut back on the amount of gas you use, by working from home when you can and doing all of your errands at once instead of making a trip into town every day!

You should avoid going out to eat and instead cook from home. Your cup of coffee every morning on the way to work can become expensive day after day.

You may be able to cut back on the magazines and newspapers that you get regularly. This is also not the time to go shopping for clothes or anything else that isn’t essential.

Even if things look better, continue to watch your spending. Though you may get your job back, or you find a part-time job to help with your expenses, that doesn’t mean that you should start spending money again. Continue to use your money wisely because you have no idea what will happen tomorrow. You could be back in the same boat in a few weeks or months if you aren’t careful.

Instead, work on paying off your debt. Even if you have some leeway with your banks, lenders and other debt collection agencies, you need to come up with a plan to pay off your debt.

I recently wrote an article on tips to help you deal with the stress of debt. You can read it here if you want.

Not only should you be paying off your debt, you also need to work on saving money! Most people recommend having an emergency fund. Most financial advisors say that it should cover your expenses for six months, just in case you lose your job.

This can also be used with other unexpected expenses, such as car repairs, medical expenses, and even an appliance breaking down in your home. If you don’t have much money in your savings account, you should start now. Even a few dollars a month will add up over time.

Staying financially healthy and stable can be hard even when times are good. When things are tight, it is even harder. You may need to talk to your lenders and credit agencies to see if they can help you out a little bit. Then, find a way to pay off your debt, even if you have to take a second job.

This is also a good time to look at your expenses. There are plenty of things you can cut out, including magazine subscriptions and your daily cup of coffee from the coffee shop. When things do turn around, you should work on saving some money, just in case this happens again!

Previously published on Medium and/or Newsbreak.