We have all been in certain financial situations where we have found ourselves regretting decisions we have made. Whether you have found yourself needing emergency cash, funds to cover a surprise maintenance cost or found yourself in a dire situation at the arrival of an unexpected bill. By avoiding certain situations, you will be able to secure yourself financially, without having to fork out tin the long run. Below are some top tips and tricks to ensure you stay cash savvy by knowing what to avoid financially and live life the easy way.
Have A Fallback Emergency Fund
Emergency savings are exceptionally important. We never think those “just-in-case” moments will come, until it is far too late, and you find yourself in a sticky situation. An emergency fund should ideally consist of at least 6-months of your salary, just so you have something to fall back on when the worst occurs. This could be from losing your job, you have an injury that prevents you from working, or you have a necessary, but surprise cost arise as if out of nowhere.
Pay Off Your Loans In Full
When you intend to pay off your loan, ensure that you pay it back timely and to its full amount. This will not only prevent you from receiving surplus late payment fees and accumulating more interest, but it will also show that you are true to your word and have the affordability to repay any loans you may take out. Even so, if you do have bad credit and you feel the need to borrow a loan, there are no credit check loans available online for you to access, should you feel it is the right decision for you in your current situation.
Focus On Your Needs
Rather than living in a mental state of “I want”, perhaps a wiser mindset to uphold is that of focussing on your actual requirements. You can always make room for a person budget somewhere down the line, and your favourite hobbies, restaurants or any other cash heavy activities, wills till be there when you find your affordability has balanced out to a secure level. The money you shave away at your savings, the more likely it will become that you find yourself struggling financially.
Budget, Budget, Budget
With a budget, life becomes a walk in the park. Everything is better with a budget. By figuring out what you should spend, you can make your life a lot easier. Whatever savings you do happen to make, stick them into a savings account and watching that nest egg grow. If the time every comes where you need to cut down on your expenses, you will have thought ahead and find yourself in a much more secure situation than you would have been otherwise. To do this effectively you should estimate your monthly take-home income, estimate your monthly expenses, add up both and add any excess into your savings. You can watch your money grow, it’s as simple as that.
