Every time you turn around it seems like someone is after your money.
Sometimes it’s in the form of an unwanted expense or up-sell.
Sometimes it comes in the disguise of a helpful get rich quick scheme that ends up doing nothing but making someone else besides you rich.
No matter what your situation is, it doesn’t have to be all doom and gloom. With a few basic fundamentals in mind, you can easily avoid disaster and stay on the right financial path.
Below are a few tips on how you can make things a little easier.
How to Save Money
The hardest thing in saving money is how to get started. It can be tasking to find out ways to save money and use the savings to acquire financial freedom. To develop a realistic savings plan, one needs to do the following:
This is the first step in saving money. One needs to know how much he/she is spending. An individual can keep track of everything spend for a whole month. This means every snack, newspaper and food bought in that specified period.
Once the spending data has been collected, it is up to the individual to organize these data in different categories such as mortgage, groceries, gas and so on and then get the total amount of all the expenses.
Make a Budget
With a good idea of how much is spent in a month, one can now make a budget and plan the month’s spending and limit any over-spending. Money for emergencies should also be included in the budget.
Other regular expenses such as car maintenance should also be reflected in the budget.
Plan to Save Money
One can create a savings category within the budget and try to make it at least between 10 and 15 percent of the total income. It is recommended to save on non-essential things that one spends on such as dining out and entertainment.
Set Savings Goals
When goals are set, it becomes very easy for a person to start saving now that there is a clearly defined path to be followed.
Before goals are set one needs to consider of how long it will take to achieve certain goals. Short term saving goals can span from one month to an year while the long-term saving plans can even extend to ten years.
Decide On the Priorities
Different people have different priorities when it comes to saving.
In setting of priorities one need to decide how long they can wait for the attainment of the goals and how much he/she is willing to sacrifice to see to it that the goals are attained.
The setting of priorities is a decision making process. If for example one is saving for retirement, other goals such as saving for a vacation will be left out and the focus will be on reaching the retirement savings goals.
How to Avoid Bankruptcy
Bankruptcy is a legal status of an individual who cannot settle the debts he/she owes to creditors.
Bankruptcy is usually imposed by a court order after the process is initiated by a debtor. Declaring bankruptcy damages a person’s credit and affects future opportunities and purchases.
Below are ways that one can use to avoid bankruptcy:
Talk with the creditors.
Creditors may seem to be enemies at this time but if one is considering filing for bankruptcy they will be willing to talk, as they do not want to lose all their money. The creditors may lower the interest rate and even extend the payment period.
Refinance the home and cash out.
Mortgage is a secured debt and has a much lower interest rate than most credit card companies. One can then use this secured debt to pay off high interest unsecured debt.
People get into debt by spending more than they earn. To get out of debt live within your means and cut any unnecessary expenses.
If one runs out of options, it is recommended to a get a bankruptcy lawyer early. Try Canterbury Law Group Bankruptcy, they have one of the best bankruptcy attorney in Scottsdale. The lawyers will be helpful in guiding you through the filing process.
For more information on the bankruptcy filing process visit the Canterbury Law Group Bankruptcy website at www.canterburylawgroup.com.
How to Maintain Financial Fitness
Below are different ways on how to maintain financial fitness:
- Get rid of monthly expenses that you rarely use.
- Increase the monthly income by venturing into new ways of making money. Consider freelancing or taking an evening job.
- Deal with debt and find ways of avoiding it altogether.
Image courtesy of FreeDigitalPhotos.net