A degree of money stress is inextricable from the human condition. You don’t have to look far to see the evidence of this, with an estimated 73% of people dying with outstanding debt. But there are still things you can do to greatly minimize the amount of financial stress you experience. With a little bit of discipline, strategy, and consistency, you might even be able to get rid of the stress entirely.
Assess Where You Are
The first part of any financial plan involves figuring out your current financial state. Perhaps you find that you are not accruing wealth at the speed you would like to. If you are working at a job that simply isn’t cutting it, consider looking into a promotion or a job change. Likewise, if you have a lingering thought in the back of your mind that you might be paying too much for rent, maybe it’s worth exploring other options that better suit you.
The rule of thumb is that you can afford to spend around 30% of your income on rent. If you can do better than that, more power to you – but don’t fall prey to paying for a nice place you can barely afford.
Fix Any Immediate Problems You Can Right Away
One of the preliminary steps to setting your financial life in order involves getting rid of any immediate financial stressors. If you have any outstanding debts, get rid of them as fast as you can. If you need a bit of extra cash to help you out of a crunch, consider a payday loan. To residents of Colorado, Check Into Cash offers payday loans in Colorado Springs that can help get you out of a time-sensitive bind.
Another common hindrance to the financial well-being of many people is bad credit. If your credit score isn’t all that it could be, looking into a credit repair consultation might be worth your while. This involves meeting with a legal expert and figuring out the source of the poor credit. Sometimes, it might take time to dig yourself out of a bad credit ditch, but other times it could be as simple as disputing an error with a credit agency.
Invest Broadly
One of the best ways of accumulating wealth over the long-term is via diversified investments. The more different places you can put your money, the more stable your savings will be. This safeguards you from all manner of crises. Leaving all your money in your bank account is a waste, considering inflation and the ways in which better investments could be working for you.
Liquid assets refer to investments that can quickly be transformed into usable currency. Examples include stocks, Certificates of Deposit, and mutual funds. Within this subcategory, it is also a good idea to diversify your portfolio and to include a broad spectrum of the market. This will further stabilize your funds.
Static or non-liquid assets refer to investments that take a bit more time to be turned into money you can use. They include real estate and other valuable property, like cars or antiques. Just because the money associated with these investments takes relatively longer to obtain does not prevent them from being a formidable section of your overall wealth. People will always need houses, so you can rest easy that the house you purchased will likely retain high value over the long term.
Static assets are also an opportunity to integrate a hobby into a lucrative endeavor. If you are a classic car aficionado, maintaining a collection of esoteric automobiles can both satisfy your inner gearhead while building a tremendous amount of wealth – especially if you have the time and knowledge to work on them yourself. The same approach can be applied to other popular collectibles, like guitars or furniture.
Fine-Tune Your Monthly Expenses
Eating food is non-negotiable, so it pays to figure out cost-effective ways of keeping your stomach full. Monitor your grocery bill and see how low you can make it. Tons of savings can be had in the form of coupons, rewards cards, as well as wholesale grocers. Likewise, shopping with online merchants for goods with a longer shelf life can be a good way to cut out the middleman.
Think about the money you spend in the course of a week. You might think of your morning routine as a sacred rite, but you might be surprised at how much you can save with a little tweak. For example, spending $4.50 for a cup of coffee every day might not seem like much, but that adds up to $90 a month, and over a grand if you maintain the habit throughout the year. On the other hand, decent coffee machines can be had at a very reasonable price – and reduce the cost of your daily cup of joe to mere cents.
Get Rid of Unnecessary Subscriptions
It is in marketers’ best interest to keep you subscribed for as long as possible. Just because you have long forgotten about a certain membership subscription doesn’t mean they will forget to bill you. If you find that you aren’t getting your money’s worth out of something like a gym membership, there’s no point in shelling out the cash every month.
This sacrifice does not need to signify giving up on your physical health. In fact, there are many ways in which simply buying exercise equipment beats out the reliance on a gym for your fitness. Over the long-term, investing in some exercise equipment and putting in your house beats the money you give to the gym that you’ll never see again.
