It goes without saying that getting your finances back on track is easier said than done. It takes hard work, commitment, and sacrifice to make real progress.
Fortunately, if you have a goal and you’re willing to put a strategy in place, it is possible for everything to come together.
Did you know that the average household has $17,000 worth of credit card debt in the United States? Not to mention, most people are still paying off student loans, hoping to buy a house, and desperate for a vacation. Here are some ways you can get your finances back on track in 2018:
Repair your credit
While it may seem overwhelming, it is possible to repair your credit. Once you’ve got a good idea of where you stand, you can take a number of smart steps to improve your financial situation. You don’t need a dedicated credit repair company either, you simply need to spend a few hours analysing your situation and coming up with a plan.
The first step is to get copies of your credit reports. Check them for any errors or incorrect information. Now it’s time to look at your credit cards. By shopping around, you may find that you can switch to a much cheaper interest rate through another bank and transfer your current outstanding balance. Another option is to get a debt consolidation loan.
Set a budget
This is one of the most difficult things to do since many people don’t want to face up to the fact that they’ve been living outside of their means. The first step is to write a list of all of your outgoings each month. Then, you need to come up with a debt payment plan. You should also be paying into an emergency fund each month. Finally, anything left over can be used for entertainment, shopping, and dining out.
It can be difficult to stick to a budget. That’s why you may want to download a top finance management app or Apple spending app. If you don’t have an iPhone, check out this Google Play money app.
Examine your spending
You have two ways to get your finances on track: Earn more money, or spend less. The money you’re planning to save or use to pay off debt needs to come from somewhere. If you have a skill you can use outside of your day job, you may want to consider getting a part-time job or side hustle- at least until you’ve paid off some debt or you’re in a better financial situation. And if you simply don’t have the time to work more hours, you’ll need to make some cutbacks. Look at how much you’re spending on things like coffees, eating out, online shopping, and hitting the bar. Once you begin cutting back on these spending, it will be much easier for you to reach your financial goals.