Jan 21

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Beating the Financial Crunch – 5 Things You Can Do

Staying afloat during this day and time can be very challenging. The worries of whether you can keep your job or not and how long you can  keep it,  coupled with the stress of day-to-day, paying bills here and there, life has become more overbearing and complex than it was back then. Consider the following options to alleviate your load from this day forward.

1. Live within your means, avoid incurring more debt. How much do you earn right now? Is it enough to help you make it through till the next payday? Do you really have to borrow money or use your credit card to buy something? Living within your financial capability means you have to leave behind some comfort you were used to. You may need to put off buying a house or doing some home improvement for a while or better yet, rent an apartment. When you have a pay raise, stay within the same level of frugality you have practiced when your pay was lower so you can pay off some existing debt.

2. Use public resources available in your area. You love to read books, watch movies, and access the internet. The public library is the answer, not Netflix, or Family Video. Not that these places are bad but if you want to lower your expenditure on entertainment, you might as well look around for something free without infringing copyright laws. If you have a laptop, you can bring it with you to the public library and spend unlimited hours of free internet access or at least until the library closes. How do you think I manage writing online for you?

3. Make an inventory of your immediate needs, not wants. Grocery items cost little if you look at them individually. However, little things could add up to more than how much you are ready to spend money on for that particular week. Make an inventory of your needs by listing items on a paper. Decide whether or not each item is a necessity for survival or just something you want to have. Needs and wants are two different things. Being able to prioritize your purchases, bringing your list with you when you shop and sticking to it could impact your financial health in epic proportions. Likewise, use coupons – there are tons of them online and on newspapers or promo prints in the mail.

4. Pay off your credit card debt one at a time. Here is another one that requires a list. Write down your credit cards, the interest you pay, and how much you owe on each one. Make a decision to pay one of them with more than the minimum payment and do so until you pay it all off. Meanwhile, pay the rest of your credit card debts with only the minimum payment. There are various arguments whether to consider the interest rate or the amount you owe when deciding which credit card to pay off first. Whatever you choose, stay on it until you finish and do the same scheme with the next card until you are close to exterminating your credit card debts. Do not fall prey to credit card consolidation schemes or credit transfer and pay – after – 12 months – with – no – interest scheme. While some may offer legitimate help, you’ve got to always read the fine print and find out what the catch is.

5. Develop a healthy lifestyle. Eat healthy and be more active. Falling into depression or moodiness could spiral into something you do not want to happen. Medical bills could easily skyrocket and your job performance may be jeopardized. Staying out of excessive alcohol consumption and/or recreational drugs is a must during these days. Like a dependable machine, when all you can rely on is yourself, you don’t want your machine to break down and fall apart when you need it most.

Survival to the fittest, elimination of the unfit. If you do not gear up and become resilient enough to withstand this predicament, you are the weakest link.

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1 comment

  1. Georgie

    Useful piece of writing, I will be viewing back again often to find updates.

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