Are you close to financial ruin? It’s not an easy time for the economy, and it’s even worse for individuals. Unemployment rates are rising, and jobs are scarce. Even with a job, you may be underpaid. Like most others, you’re probably living from paycheck to paycheck.
If you have no savings and lots of debt, you could soon hear from a debt collector. Before you panic, consider whether you’ve done everything to turn the situation around. Have you tried an online rebalancing feature for your investment accounts? Can you get a low-interest rate on past loans? Take a look at a few easy ways to start to turn your finances around.
Try to pay off some debts.
Debt is a pretty heavy burden to carry around. So, it’s best to try to pay off as much as you can. An easy way to ensure that you don’t dig a deeper debt hole is to stop using credit cards. Once you do that, you can focus on a debt repayment plan for your existing debt. Also, get legal advice on the debt that you do have. Get a free consultation with legal rights advocates to ask about debt repayment. Once you start your debt repayment journey, check your credit score and credit report regularly to track your progress.
Also, remember that you have rights even with a collection agency. Some don’t use the best practices for debt collection. In these instances, you can take legal action. If a debt collector is harassing you, contact a firm like yourlegalrightsadvocates.com. Their advisors can explain your consumer rights and the fair debt collection practices act.
Set a budget.
An investment strategy is essential, but so is a reasonable budget. Set a strict budget and stick to it. Count every penny you spend. Cut your grocery budget in half. Set an amount aside every month for essentials. And, don’t add anything to it when you run out, or it won’t help. Check your insurance plans and make sure your premiums are low enough. A good insurance policy will also help you save for a rainy day.
Also, account for all the money you spend online. With one-click payments, you will not realize how small purchases add up. Make a list of all the online services you have. Do you need all of them? Could you suspend some of your accounts till your finances are back in order? A few smart cuts will help get you back on track.
Plan your future.
Everything from an emergency fund to retirement savings can help boost your finances. Once you’ve set up an excellent monthly budget, it’s a good time to think of long-term financial goals. You won’t be able to turn your finances around if you don’t save for the future.
You can get a financial advisor to help you calculate the perfect amount to save every month. Or, set aside as much as you can from your current income. Increase the amount you save as your income increases to make this count. Also, remember to account for health emergencies and sudden expenses. Consistent savings will help you avoid financial ruin in a crisis.
Rebalance your portfolio.
Not everyone has a portfolio — this is an excellent time to start one if you don’t. However, the best way to turn your finances around is to rebalance an existing portfolio. Asset allocation and mutual fund information is easy to find, but not as easy to get right. Your best bet is to get a financial advisor. An even better idea is to use a portfolio rebalancing tool.
With a rebalancing tool, you can invest in an index fund or percent stocks. You will be able to assess market conditions. And, the portfolio rebalancing is a great way to start turning your finances around. An online service will act as a portfolio manager and help you figure out what to do with your personal capital.
Sell your stuff.
Investments, savings bank accounts, and income growth are great options. However, they won’t help when your finances are in bad shape. To get some quick relief, consider selling items you no longer need. Several things you own may be worth something online.
Set up an online account, take some well-lit pictures, and list things. While this is not a get-rich-quick scheme, it can bring in some much-needed additional income. With time and proper savings, this can also help you turn your finances around.