You’ve got the debtors at the door, last demand letters and statements piled up in the living room and a quivering, shivering bank balance that’s teetering on the brink of your overdraft limit. It’s not a great way to start your day – and it doesn’t have to be this way. There are subtle and micro ways to quick fix your finances.
For some, money slips through their fingers like grains of sand. Yet these perennial spenders don’t realize that they can cut their budget with the little things.
Indeed not every change in your lifestyle has to stem from some Del Boy-alike get rich quick scheme. All you need is a few small changes. So try some of these.
3 Micro Ways to Fix Your Finances
Create an Emergency Fund
An emergency fund is essential for everyone to protect against any unexpected emergencies. You start putting some of your savings into a separate account and only tap it if it’s truly an emergency( thus, the fund gets its name).
It’s good to have six months of expenses saved up in an emergency account. I have 9 months of my expenses in an online ‘interest saving account’ from Discover, I earn almost 1.2% interest on this.
If you’ve always struggled to create an emergency fund, consider starting small. You can start by saving $1 per week and increase it $1 each week. Save it in a bank account, by the end of the year, you’ll have accumulated $1,378 — plus interest.
Listen To Experts
You don’t have to tackle your financial problems alone. Whether you’re in a major money trouble or a minor monetary issue, you can always arrange a meeting with a financial planner to discuss the finer points of your budgetary plans.
They’ll be willing to discuss anything you want, from a loan to cover debt repayments to a more streamlined and easily manageable set of accounts.
If you’re not comfortable talking about your debts to a bank manager, then why not find a friend or member of your family and seek their advice? (Related – 51 Ways to Get out Of Debt)
Even those who aren’t bank managers have tons of experience sorting their own finances – so don’t take their tips lightly.
Use Your Credit Cards With Caution
Once you’ve got a credit card, you’ve entered into a whole world of temptation. You’ll start buying expensive items, you start buying things worth more than your paycheck. “Just stick it on my card, mate!” You’ll head online and treat your little slab of plastic as an invitation to spend, spend, spend!
But you’ll soon regret that view when you’re swirling in debt. So our advice is to use those credit cards in the right way. It’ll free you of debt before you’ve started.
You should not forget that a credit line is not an excuse to spend. A lot of people in the US are now under enormous credit card debt, all due to irresponsible ways of handling their credit cards.
As a rule of thumb, never spend more on a credit card than you can afford to pay off by the end of the month. Paying off your balance every month prevents you from incurring interest and late fees, and will ultimately help improve your credit score.
Readers, Let us know if these three simple ways can’t fix your financial troubles. Do not forget to read my complete list of good financial behaviors.