Being healthy requires a combination of good habits including dieting, getting plenty of rest, and exercising to stay fit. Similarly, having good financial health requires you to practice good money habits. When your finances are out of shape, they can cause a rippled effect in your life. People have lost their jobs, homes, cars, businesses, and personal assets as a result of not having control of their finances. There’s also the loss of dignity, feelings of hopelessness, and the increased levels of stress. The only way to stop your finances from taking control of your life is to whip them into shape.
Set Financial Goals
No one runs, goes to the gym, or enrolls in a fitness class without a goal in mind. Some may be trying to lose 10 pounds, some may be trying to beat diabetes by losing weight, and others may be trying to build muscle mass. The same is true for your finances. Before you can begin to create a plan, you must first know what you’re trying to accomplish. Are you looking to go on a trip, pay down debt, send your kids off to college, buy a home, or stop the paycheck-to-paycheck cycle? Take some time to evaluate what you want out of life and create financial goals that will help you accomplish those dreams.
Get Clear About Your Finances
Let us say your goal was to lose 20 pounds. You won’t ever know if you’ve reached your goal if you don’t first have a clear understanding of where you are presently (for instance, how much you currently weigh). Now that you know what your financial goals are you need to get clear about where you are present so you can create a plan to get where you want to be. This is the time to review your finances. Calculate all sources of income, get a list of all your debts, review your credit report, and record all of your daily spending.
Knock Out Debt Fast
Debt is much like body fat. Though having some may be necessary, when the body has too much fat it can lead to an array of health complications. As some debt is a given and perhaps even good to have, too much of it can result in the inability to afford what you need and many financial consequences including loss of assets and bankruptcy. Cardio is best for blasting fat, but it will take a little more to knock out debt. Here is some quick advice:
Contact debt collectors and negotiate affordable repayment plans
– explaining that you’re dealing with a lot right now can sway them to give you other terms to work with. They could eliminate late fees and collection costs giving you a lump sum payoff amount or smaller monthly payments to get the debt paid back faster.
Pay down high-interest or charge-off accounts first
– older, negative accounts do the most damage to your credit history. The sooner you get them paid off, the better. If the interest is too high or the account is nearing collections, you might consider Blue Trust Loans fast cash personal loans to pay off the debt. Now, the debt is cleared and you can pay more affordable monthly installments back to the lender.
Find ways to earn more
– If you don’t have enough money coming in to get those debts knocked out fast, you may need to earn more. You can get a part-time job, get paid to run errands for others, become a rideshare driver, or manage social media online for extra cash. Use this money solely for paying off debt.
Kill Bad Spending Habits
Just as eating junk food, skipping breakfast, and avoiding physical activity can ruin your chances of achieving your fitness goals, bad spending habits can ruin your finances. You need to get them under control. Review bank and credit card statements as well as shopping receipts to get a clear picture of how much you’re spending on a regular basis. Determine how much of these expenses are necessary and eliminate anything wasteful. This will free up cash that can be saved, invested, or used to pay down your debt faster.
Develop Better Finance Habits
Now that you’ve cut out all the unnecessary spending, you must implement better financial habits. This includes creating a realistic budget, setting up a savings account, finding ways to invest your money, looking for opportunities to earn, paying your bills on time, and always looking for ways to save.
Being out of shape sucks, just as having finances that are out of shape is horrible. Similar to getting in good physical shape, to get your finances in order you need to set goals and develop a plan to get there. The above-mentioned tips are all vital to getting your finances in shape. Each step puts you in control of your income allowing you to spread it further and afford a life you can enjoy.
