Do you ever feel handicapped when it comes to finances? If you answered “yes,” then it might make you feel better to know that you’re not alone. A lot of people have the same problem. Everyday life stacks up so quickly that it becomes difficult to properly manage finances, especially when it doesn’t seem as urgent as other things. Some people might hire a company that specializes in financial research services, but for those without that option, managing money can seem like an impossible battle.
Fear not though! It is possible to not only win this battle but to win the war by conquering your financial burdens. This blog post is going to walk you through several common financial challenges and show you how to conquer them!
Before we get started, the first thing to note is that everyone has a handicap when it comes to finances. That’s the bad news; the good news is that there is always a way to overcome that handicap. Let’s get started.
“I can’t afford to save money.”
In order to save money, the first thing you have to do is set priorities. Start by going through all of your statements and recording every expense. You cannot hope to save money until you know where it’s going. Once you have that information, determine the priority of each expense, starting with must-have expenses. The goal is to determine how much money you need for your business to survive and make sure that’s funded first.
Once you have ensured that the highest priority items are funded, then you should start putting that money in your own account. That account will be used solely for essential expenses. Keep in mind that essential expenses also include paying yourself.
Next, calculate at least 10% to 20% of your income (I recommend 20% if you can afford it). That will be the amount you save each month. That money should go into your own account as well.
(Tip: Setting actual savings goals is a proven method of staying motivated to save money)
At this point, you should have an account for must-have expenses, a savings account, and a main account. Use the leftover money for reinvesting in your business and for paying incoming expenses like outsourcing, marketing, etc.
“I have too much debt.”
Debt is another huge obstacle that gets in the way of financial success. If you find yourself deep in a hole, the first thing you have to do is stop digging. Use money management strategies to make sure that you’re living within your means. Use the previous tip to build up a bit of an emergency savings.
Search for methods to reduce the interest you’re paying. This might mean transferring credit card balances or even threatening to do so in order to get a better rate. There are some options here:
- Get a lower-interest home equity loan to pay off high-interest credit cards. This one is a risk though because it puts your home on the line.
- Get a peer-to-peer loan.
- Get a loan from your retirement plan.
Naturally, you’ll want to pay down your debt by making extra payments. Put the most money towards the highest interest balances in order to save the most.
“I don’t have the knowledge to manage investments.”
This one is actually a pretty each to fix. You can pay a company like Research Optimus to provide financial research services to help. This will help keep things simple. Also, remember to diversify your funds. Never put all of your money into a handful of investments. You don’t want to risk all of your money in just a few deals.
Author Bio:
Jacob Haney is a content marketer presently working with Research Optimus, a business research outsourcing company. A writer by day and a reader by night, he is loathe to discuss himself in the third person, but can be persuaded to do so from time to time.