Plenty of people struggle to have a healthy relationship with their money. It can seem so frustrating if you compare yourself to others and wonder why they have the magic touch. Many people feel like they start to control the money and then something happens to set them back. A loss of employment, major illness, car accident, or home repairs can sneak up on us and create havoc on the bank account. No matter what the situation is, you can gain control of your financial health and improve. Here are some recommendations on how to make things a bit easier.
1. Borrow The Money
If you are reading this and are already faced with a major life event that is resulting in a hole in the bank, consider borrowing the money to use for the emergency. Don’t be ashamed to ask friends and family for help. If that is not an option, installment loans can help save the day. An installment loan will give you the money you need upfront. You simply pay it back in monthly installments. The time frame can range from six months or longer.
2. Look At Your Budget
People who are good with money have one thing in common, their budget. They have one that is realistic and they follow it! Budgets can feel overwhelming but ultimately, they are the best tool to help you control your finances. You can see a clear picture of where your money is going, where to make changes and how to work at saving money for emergencies. Taking this step can help you avoid having to borrow money or use credit cards if a major life event occurs!
3. Be On Time
If you want to gain control of your finances, always pay your bills on time. It sounds like such an easy task but many people don’t really think about the effect late bills can have on your finances and your credit score (which you need to qualify for better loan terms in the future). Let’s take a look at credit cards. If you pay your entire bill (not the minimum due) on time every month, you show that you are responsible while avoiding paying any interest on the money you used. If you pay the minimum back each month on time, interest accumulates on the remaining balance and it takes longer to pay off the loan amount. If you pay anything late, you are still charged an interest fee along with a late fee. Why pay more than you need to? If you consistently pay late, the company will report to the credit bureau that you don’t pay on time and it will lower your score.
4. Look At Your Finances On A Weekly Basis
It can be super easy to sit down and look at your bank account at any time on your phone or laptop, but looking at everything on a weekly basis is far better. Did all your bills get paid that week on time? Did money go into your savings account? Are your budget and cash amounts matching up properly? Do you need to adjust your budget for a change in income recently? One of the worst things you can do is not watch your bank accounts and budget. You could find yourself in a situation you hadn’t anticipated.
5. Get An Accountability Partner
If you are romantically involved with someone that you share finances with, you should always stay connected in regards to your money and expenses. Working together can prove to be difficult at times, but it also shows a true partnership by helping one another achieve the same goal. If you are single, look for a friend or family member who could be your support person who can check in with you. Or you can look in your area for a non-profit organization that offers financial courses geared to positive financial health that can support you in your goals.
Some feel like they will never have a good relationship with money. Take the time to do your best with it and you should be able to overcome your financial issues.