It is a sad fact that many of us will, at some point in our lives, experience some money problems. As difficult as that sentence is to read, it can be empowering if you let it. Knowing that life is never simple and rarely follows the plans we lay makes it exciting and unexpected – however, it doesn’t have to leave us feeling unprepared. Here are our top tips for solving the money problems and some advice for what to do if you’re already struggling with your finances.
Reduce expenses for solving the money problems
Look through your finances regularly. Set several times throughout the year to sit down and evaluate what outgoings you have and whether they are still working for you. For example, could you find a better insurance provider? What about changing your phone plan to a sim only? Are you paying for services you don’t use? Identify ways you can reduce expenses, then set a direct debit or standing order of the amount saved to be paid directly to your savings. You won’t notice the amount daily – but you’ll notice that the savings account increases in size.
One of the best ways to protect yourself should a difficult situation occur is to make sure you’re covered as best you can. Look through your life and home insurance particularly, and look into whether the insurance you pay for would be enough if one of the situations it covers were to occur. Of course, we hope this never has to be used, but if it does, you’re safe in the knowledge that you’ve already taken care of yourself or those you love.
Check your credit score
This may seem like an unusual one, but if your credit score is low and you do need to approach a loans company for some short terms help, then you know that you’re in the best financial position possible. Changing how eligible you are can be as simple as showing you can pay off a loan in full, getting rid of some cards you no longer use, or even getting a credit card that you pay off each month.
Assess your options
If you’re already struggling with money problems, it can be easy to feel as though there is little you can do. This is not true. Be proactive. Look through your statements and find things you can do without or cut back on for a while. Don’t mindlessly use a credit card. Find the best deal around and potentially switch your balance or loan to find a better rate. A few clicks of a button could be all it takes to make a huge difference in your situation.
Speak to a financial adviser
Some issues are not easily solved. Most financial advisers will work for free as they are paid through any companies you choose to buy products through. Maybe you could get a cheaper deal on your mortgage or insurance? What about having someone look over your statements to see where you could save and better utilize what you have? Don’t forget that The Citizen’s Advice offers free advice to people in your situation and could make all the difference if a financial adviser is out of the question.
Most of all, stay positive. Your mindset can make all the difference. Feel empowered to change your financial situation positively, and the rest will follow.