10 tips to solve your financial problems

10 tips to solve your financial problems


No one is immune from financial problems. Poor planning or a major blow like divorce, illness or unemployment can turn everything upside down. Need help? Here are some tips for dealing with your financial problems.
1. Target the problem

Having debt doesn't necessarily mean you're in financial trouble. Few people could buy a house or a car otherwise. There are, however, some red flags that should be taken seriously.

Do you recognize yourself in one or more of the following statements?

    You have more than one credit card and sometimes you use one to pay off another.
    You need to refinance your home to support your lifestyle or to pay off consumer debt.
    You are unable to pay off more than the minimum amount on your credit cards.
    You delay or skip certain payments.
    You spend 40% or more of your gross income to pay off your debts.
    Your financial situation is a cause of stress.

If so, there are steps you should take to correct the situation.
2. Make your budget

The first step in solving your financial problems is to budget. You can use software, an online budget tool, a mobile app, or just a sheet, pencil, and calculator.

You must write down your income and all your expenses. To avoid underestimating these, keep all your bills for a month. Also think about one-off expenses like back to school, gifts, vacations, driver's license, etc. Don't forget to pay off your debts.

Several consumer associations also offer training on the budget.
3. Reduce your expenses

Some expenses can be reduced quite easily. Consider reviewing your various packages, such as your telecommunications services. You could save money by making sure they meet your needs, no more and no less. You could also start watching for discounts at the grocery store and limit food costs by packing yourself lunches.

Analyze each of your expenses to see how you could reduce or eliminate them.
4. Pay cash

Debit and credit cards are convenient, but for some they make it more difficult to keep track of expenses. Paying with cash can help you stay on budget. You can divide your money into different envelopes for groceries, entertainment, and clothing, for example.
5. Stop the debt

One tip to stop getting into debt is to spend within your means and make sure you have enough to pay off your credit card balance, for example. If you're the type of impulse buys that you'll later regret, your best bet might be to leave your credit card at home.
6. Avoid buying new

There are several alternatives to buying new goods.

    Buy used or trade in goods. Look in thrift stores, classifieds sites, and neighborhood bazaar Facebook pages. There are many bargains and trading possibilities.
    Borrow or rent. This is interesting if this is an item that you will rarely use. Sign up at the library for your books and magazines, for example.
    Do it yourself. Using a coffee maker is much more economical in the long run than buying a coffee every day.
    Take advantage of freebies. There are several shows and free activities at festivals, for example.

7. Meet your advisor

Your advisor will help you with your financial problems. In particular, he may review with you your flat rate bank charges and your insurance coverage. They may also offer you certain solutions, such as a reduced rate credit card for an annual fee.

You can also consider the possibility of debt consolidation together. Putting all your debts together in one loan with a lower interest rate will help you pay them off faster. It will also make it easier to manage your finances.
8. Increase your income

Think about ways to increase your income to get out of your financial troubles. Here are some possibilities:

    Ask your employer to work overtime.
    Offer products and services to earn extra income.
    Sell ​​items that you no longer use.
    Find a roommate.
    Find a second job.