Nobody is perfect and we all experience financial difficulties from time to time. If you’ve ever found yourself short of cash or you’re tired of living from one payday to the next, here are some simple tips to avoid getting into dire financial straits.
1. Budget - A budget simply ensures that you don’t spend more money than you make. Keeping track of your spending can help you decide if you need to change what you spend money on. A nice approach to budgeting is the 50-30-20 rule.
2. Income protection insurance - Have you thought about what would happen if you were unable to work for a period of time? If you lose your job, are injured, sick or otherwise unable to work this can place a huge amount of stress on you and your family. Income protection insurance allows you to receive a proportion of your full salary for a period of time until you are able to work again.
3. Pay down debt - Wherever possible, make regular payments on your debts. Paying more often than required means less interest over the long term and more money in your pocket. Even paying the same amount each month on your mortgage, but paying it weekly or fortnightly means you pay less interest overall. The same is true of credit cards and other loans or lines of credit.
4. Set financial goals - Sometimes it’s difficult to save money without having a specific goal. Whether you want to pay off a car, save for a holiday or buy a new kitchen, setting goals for the next 1, 3 and 5 years can give you a yardstick for your progress. Even using wall charts or writing your goals on a chalkboard or stuck on the fridge can give you a sense of achievement and make sure you’re heading in the right direction.
We can’t plan for every circumstance and sometimes things still go wrong. If, for any reason, you're in need of some financial help, just check out our cash loans from $1,000. Once a loan is approved, we can usually deposit the funds into your bank account with a few hours!