Staying up late at night worrying about your finances? These recurring thoughts are the result of your poor financial decisions. It’s time to make changes to your lifestyle. Here are eight ways to improve your financial situation, according to Graylock Advisors.
1. Automate Your Savings
If you live paycheck to paycheck, then you know how difficult it can be to save money. But if you put your savings ahead of your other expenses, then you’ll improve your financial situation. Saving money takes hard work and dedication that can quickly fade if you’re not careful. Having automatic transfers from your checking account to your savings account can make it easier to save money.
This will motivate you to save more money. There are free automatic savings apps that help you to determine a certain amount to save based on your income and spending. You can also set up automatic bill payments that can reduce stress when bills are due. You’ll feel as if you’re in better control of your payments, but you should regularly check your bank account to avoid overdraft fees.
2. Cut Back on the Expenses You Don’t Need
Graylock Advisors says that you can improve your budget by reducing expenses on the things that you don’t use or need. Take a good look at your cable bill, cell phone bill, gym membership, streaming services, and other additional expenses. When it comes to your cable or cell phone bill, you should negotiate a lower payment plan that doesn’t affect your usage level. Even if the savings are small, cutting back on these expenses can help improve your financial life.
Now you should take a good look at your credit card and debit card statements and make a list of your expenses. Decide if you really need them in your life. If not, then cancel those services as soon as possible. There are free financial planning apps that can help you stay on top of your budget.
3. Switch to Another Bank
It seems like every major bank has a list of hefty fees. You end up spending more money than you’re saving. Consumers with a checking account who don’t meet the minimum balance requirements each month are hit with maintenance fees. That doesn’t include the ATM fees and overdraft charges that can be charged to customers who aren’t careful.
It only takes a few minutes to look over the fees associated with your checking account. If you’re being charged a monthly maintenance fee or any other fees, then may be time to switch to another bank. It’s important to find a bank or financial institution that doesn’t have any monthly maintenance fees.
4. Compare Insurance Rates & Increase Deductibles
Keep in mind that insurance rates change all the time. So, it’s best to comparison shop for insurance coverage to get the best price. This will only take 15 minutes of your time and can save you hundreds of dollars. You should compare insurance rates every few years to ensure you’re getting the best coverage and the best deal.
Ask your insurance provider to see if they have any available discounts. Some offer discounts up to 10% for homeowner’s insurance. There are also some car insurance providers who offer discounts to student drivers. Since the discounts and rates can vary, it’s important to compare the costs and ask about potential discounts.
5. Sell Your Unwanted Belongings
One way to improve your financial life is to sell the things you no longer need or use. Clean out your closets, drawers, garage, and other areas of your home. Get rid of the clothing, electronics, furniture, jewelry, sporting equipment, and toys that are worth selling. For example, furniture and sporting equipment can be sold on Facebook Marketplace or Craigslist.
Clothing and accessories can be sold through a local consignment shop or Poshmark. You can sell old or used electronics in bulk through Gazelle.com. As for those textbooks you never read, you can sell them through Cash4Books.net. Decluttering is a great way to earn money and to clear out your belongings.
6. Create an Emergency Fund
An emergency fund is ideal for unexpected events such as unplanned vacations or medical services. You should build three to six months of living expenses. You can use your savings account as your emergency fund. It’s a great way to reduce the stress in your life.
7. Reduce Your Credit Card Dependency
You should break away from your credit card habits. The best way to go about this is to enforce a cash-only policy or to lock away your credit cards.
Spending may feel good in the moment, but it can cause major financial problems. Every time you find yourself reaching for your credit cards, ask yourself if it’s worth the financial risk.
8. Reduce Your Spending
You should take control of your spending habits. To improve your financial life, you should change the way that you spend money. Opt to bring your lunch for work instead of going to the coffee shop or the fast food joint. Shop during sales and be mindful about using coupons.
Cut back on drinking alcohol every time that you go out. Shop at the bargain outlets rather than the retail stores. You may even come up with some new fiscal spending habits of your own.
Improving your financial situation can decrease stress and help you live a better life. It just takes a lot of patience, time, and effort on your part.