Many people are still struggling in managing their personal funds. As the new year starts, some are still facing debts while the others are worried about not being able to find a job and earn a steady income moving forward. What’s important is the commitment to settle debts and save as much as you can in the coming months.
A debt-free status is a typical new year’s resolution for many people regardless of nationality. So where do you start to make sure you’re going to have a financially sound 2015?
Financial planners would always encourage people to save money. In fact, they recommend saving five to 10 percent of your income. Regardless where your earnings come from, it is always best to save some amount. You will never know when emergencies crop up but when you have savings on hand, you will no longer have to panic should you be in a situation when you need fast cash.
And by savings, it does not mean just keeping and accumulating your money in the house. You need to have a savings account in the bank where your extra money should go to at least every month.
Always Pay Your Debts
Debts are a normal part of life but what matters most is we carry the responsibility of paying what we owe. If you’re still not capable of paying the full balance, make it a point to pay more than the minimum amount required. This is whether you’re paying a credit card, a mortgage loan or any personal loan for that matter, says a Los Angeles bankruptcy lawyer from Simon Resnik Hayes LLP.
Financial experts also recommend putting extra resources to paying the debt with the highest interest first.
Change Your Lifestyle
It’s time to have a think of your lifestyle last year. If you’ve been frequenting coffee shops and restaurants, maybe you need to cut back on this habit. From thrice a week, you can just go there once a week instead.
Learn to cook at home so you can satisfy your family. Cooking meals need not be time-consuming because there are short and easy recipes that you can follow that only takes a few minutes to prepare.
Also, learn to control your impulses. If you’re eager to buy something, think it over several times if it’s really necessary and useful in your life.
Sell Your Old and Unused Stuff
You may want to consider holding a garage sale to sell stuff you no longer use. For sure, you have accummulated many stuff in your home and you may no longer have enough storage space to keep them.
If that is the case, then start select things that you don’t use anymore and sell them in a garage sale or even online. You’ll be surprised at the amount you can earn from this activity.
You may be losing hope at this point while still paying all your debts but again, don’t quit. A persevering attitude will be rewarded in the end so continue doing good in your work to ensure a steady income that will help you pay off what you owe.