Different studies have shown that between half and two thirds of people live from one salary to another. That’s a pretty alarming statistic! This can be explained in part by the results of today’s economy, our own attitudes about money, and the lack of adaptation to a changing world.
Change your attitude
The place to start is with your mindset. Regarding the pay-to-pay life, you may well think that “that’s the way it is” or “everyone’s doing it,” which isn’t true. Maintaining these attitudes will ensure that your situation will never improve.
Take some time to think about what led you to your current situation. In an article in Celebrating Financial Freedom titled “4 Steps to Escape from Pay to Pay Life for Good,” the author identifies the following mental and behavioral impairments detrimental to financial health.
• You have concluded that debt is only part of life: contrary to what some people think, you don’t have to go into debt to survive in today’s world. You must decide that paying your obligations is your number one priority!
• Luxuries have become necessities: Certain luxuries like cable TV, an expensive car, and eating have often evolved from extras to necessities. These extras will bleed your budget.
• You are not earning enough: you may be underemployed and make little effort to maximize your employment status.
• You are overspending: You could also be spending more than you earn, a common trap for some people. This needs to be controlled.
• You have no plan: Basically, you spend your money until it runs out with no idea where you are going. You really need a plan.
• Money is so easy to spend – those credit cards feel so easy to swipe and sign – it doesn’t look like cash. However, it is, and then comes the interest.
• You have a spending problem: You don’t have self-control when it comes to spending, and it can even be a holic shop.
• The labor market has changed: Certainly, the labor market has changed and continues to change. You must learn to deal with those changes. On this topic, the author recommends a book by Dan Miller titled “48 Days for the Job You Love: Preparing for the New Normal.”
With an increased awareness of how you got to where you are, are you ready now to begin your journey to financial health? Here are some specific steps to take along with some useful links.
Get out of debt
You must realize that debt is an option. Interest and fees will reduce the money you have earned. Eliminating your debt is the best place to start reversing your situation.
Here are some areas where you can save money.
1) Food: Reduce the number of times you eat in restaurants. Choose some healthy ingredients from a market and prepare your lunch. This can generate significant savings for you. Some tips to save more food for you. Use coupons.
2) Car: another category of expensive expense. If you can, download your car payment. Maybe even switch to a used car. Other ways to cut care costs include changing your oil less frequently, joining Automobile Club for roadside assistance, investigating repair costs, and delaying the exchange of your car. Consider sharing the commute to work. Assess your auto insurance needs. If you have an older paid car, consider doing it without collision and without comprehensive insurance. Maintain a clean driving record and consider low mileage discounts, multiple lining with other types of insurance, and group auto insurance plans from employers, professionals, alumni, and other groups.
3) Entertainment: Consider getting rid of your cable TV for Netflix or Hulu. Here are some fun things to do for free. Go to the library for books and DVDs. Take advantage of free music and museums.
4) Clothing: You don’t need fancy clothes if you are in debt, buy on sale, go to thrift stores and discount shelves, buy second hand clothes, order clothes for gifts, take care of the clothes you have and sell clothes that don’t wear more long.
5) Eliminate credit card debt: Start by calling your credit card companies to see if they will lower your interest rate. The average interest rate for credit cards is around 15 percent, but some can go as high as 30 percent. A study was conducted in 2002 that found that half of the participants who applied for a lower interest rate received one. Consider transferring that debt to a lower interest account or arranging a loan to consolidate your debt. If these options are not feasible, prioritize your debts so that you pay the ones with the highest interest rates first.
6) Medical Debt – You can start by offering to pay cash, if you have it, while you are in the hospital or doctor’s office. This can save you 5, 10, or 25 percent from the start. If you end up paying more than the total bill, you will receive a refund. If less, you will be responsible for the rest. When you receive a bill in the mail: The part of your bill that says “can (should not)” can be negotiated. Compare what the bill says your insurance didn’t cover with what your insurer’s policy says they do. If there is a discrepancy, call the doctor’s office to fix it. Your provider can also put your bill on hold for 30 to 60 days to prevent you from going to a collection agency. Notify your provider of any secondary insurance you may have. If you already have medical debt, ask about any partial forgiveness program or request a payment plan with 0 percent interest. Sometimes you can get a payment plan for a year or more.
7) Student Loans: There is a public service loan forgiveness program that can allow those in military, teacher, non-profit, or public service to have their loans fully forgiven. There are other programs, like income-based payment, that will allow you to pay less than your regular payment if you don’t get enough income. If you want to pay off your balance faster, start biweekly payments.
8) Mortgage and IRS debt: reduce your mortgage debt with biweekly payments. For IRS debt, try to arrange an installment plan with them.
In an article titled “The # 1 Way to Quit Living on Paycheck” by Alex Thomas Sadler, she offers three useful apps for getting out of debt. They are Pay Off Debt, Ready For Zero and DebtTracker Pro.
Increase your income
Even with reducing your expenses as much as possible, you may still not be able to cover everything. Now you need to change your approach to earn more money. Think about improving your current situation and income in your current job, getting a part-time job or a parallel job, or some combination of these. Take some work-related classes and possibly earn a certificate to increase your income. Your work will often reimburse you for tuition and books. Some other ideas for you: You can do freelance work (and that doesn’t include just writing), become a virtual assistant, accounting, design, and more. You could enjoy tutoring on a topic you enjoy. Sell items you don’t need on eBay and Craigslist. A little more money making ideas for you.
Get ready and stick to a monthly budget
By preparing a monthly budget, you can track where the money goes in and out. Start by examining your previous month’s expenses for necessary items such as your mortgage or rent, car insurance, groceries, gasoline, etc. Then figure out how much you want to spend each month. Post that number somewhere, pay cash whenever you can, and even consider starting automatic deposits from your paycheck that will go directly to lessen your debt. Do this so that you are not tempted to buy unnecessary luxury items.
The following is a link to more valuable budget articles: http://www.cfinancialfreedom.com/budgeting-budget-excuses-overcome/
Here are five apps that can help you create a budget and keep track of your spending / saving goals.
• Level Money tracks your expenses and gives you an idea of how you are doing. It is free and will probably work best for those who have relatively simple and linear financial lives.
• Mint is a very popular app that helps you create a budget and then keep track of your spending, monitor your credit score, and stay up-to-date with possible fraud by automatically downloading bank account, credit card, and credit card transactions. investment. The service allows you to combine all your finances in one place, giving you a constant overview of your financial status. You can also configure alerts and automatic bill payment.
• Budget Boss is a highly visual application that uses graphs and charts to keep track of your budget and goals. It also estimates future account balances based on your current spending habits.
• HomeBudget (iPhone only) is an application that allows you to manage account balances, budgets and invoices. You can set up credit and debit accounts and track balances, and sync data with other iPhone users and can export to a desktop computer. Users can snap a photo of the receipt and associate it with a “family sync” feature that allows household members to exchange information and work together within a single budget.
• Wally is a tool that shows you what comes in, what comes out, what you have saved and what you have budgeted for. Wally helps you better understand where exactly your money is going, and then helps you set as well as track and achieve various financial goals.
Make a plan
In addition to the budget, come up with a plan on a more macro level about how you can stop living from one salary to another. Calculate what your top priorities are for your short and long term future. These may include buying a home or car, taking a major vacation, creating an emergency savings fund, or saving for retirement. Remember that paying off debts will improve your credit score for those larger purchases. Stop spending money on the little things you don’t need so you can get the bigger things you need later. Make your goals realistic so you don’t get discouraged. Spend time with like-minded people, people with prudent and responsible minds – those who spend can drag you down. Finally, celebrate your successes in eliminating your debt!
If you deprivation to savour the Morality Brio: Making money in the console of your own residence oeuvre online, then this is for YOU!: Click Here
Comentarios
Publicar un comentario