How to Overcome Financial Problems and Improve Your Finances

No matter where you look, prices are on the rise. With inflation at an all-time high, many are struggling, cutting back, implementing budgeting, and more to save where they can. Managing money can be tricky and overwhelming, but let’s check out some tips on how to overcome financial problems and improve your finances.

• What is Financial Wellness?
  • Create a Budget
  • Cut Out Extra Expenses
  • Look into Passive Income Opportunities
  • Save a Little Each Paycheck

What is Financial Wellness?

Financial wellness, as described by Annuity.org, is your ability to live a healthy financial life. It is the power to take control of your financial health now and into the future. Oftentimes we find that some things are not in our control, especially with money. Unexpected expenses come up: an extra bill is sent to you, you’re supporting a loved one, etc.

Additionally, financial wellness after lockdown for many has taken a big hit. Bouncing back and climbing the way out of monetary stress can be taxing and seem impossible. While these frustrations are high, we have a few tips to help alleviate some financial anxiety and provide financial assistance.

Create a Budget

Creating a system to help you track your money is extremely beneficial. Starting your budgeting journey doesn’t have to be hard or extremely detailed. It can be as simple as creating a list of your expenses, what bills you have to pay, and what you are left with that you can spend on or save. Once you have something written out, it makes your plan and process easier to follow, holding yourself accountable to stay disciplined.

You’ll see just how big of a difference it can make in the long run. Even when you’re on the go, download a budgeting app(s) to have it wherever you go.

Cut Out Extra Expenses

We all have our pleasures and must-haves. It’s okay to treat yourself here and there, but not to everything that catches your eye. This is where discipline is crucial and when one must look at their spending from a holistic perspective to see what you can keep and what you should eliminate.

For instance, if you have a subscription you’re not using, cancel it to save a few dollars each month. You’ll see how much you’ve saved at the end of the year, even if it’s small. Also, consider cutting how much you might spend on shopping, going out to eat, or other miscellaneous activities. Give yourself an allowance on how much you can use for entertainment, going out to eat, shopping, etc., and when you’ve reached your limit, you can’t spend any more.

This system still allows you to enjoy the fruits of your labor in a way that isn’t completely restrictive but helps you create healthy spending boundaries.

Look into Passive Income Opportunities

Jobs aren’t always easy to come by, especially in an economy that is still recovering from the long-term effects of the pandemic. Although a lot has changed, more online and work-from-home jobs have been created to accommodate those looking for full-time, part-time, and freelance jobs. Depending on your schedule, applying for some of these jobs and dedicating an hour or more a day can help you create ways to make money from home.

Save a Little Each Paycheck

Attempt to take out a little money from each paycheck you receive. Even if it’s a minimal amount, it’s still adding to your savings or emergency fund. A very popular spending method is the 52-week savings challenge.

This challenge is quite simple. All you have to do is decide how much you’ll save per week. This could be $1/week, $2/week or $5/week. Whatever is manageable for you is best. If you’d like to diversify your savings more, you can switch up how much you’d like to put away each week. Perhaps one week you save $3, the next week is $6, and the third week is $12.

If you follow this challenge, you can save up to $500-$1000 by the end of the year!

Money can be scary, but it doesn’t have to be. Continue talking about money with people you trust, and try some of the tips above. If you’re looking for more advice, talk with a close friend who might be able to help or provide additional insight. There’s room to improve your finances, starting with a small step.