Are you struggling with money and looking for ways to improve your financial health?
Well, you’re definitely not alone! Almost 40% of Americans don’t have enough cash to handle a $400 unexpected expense nowadays.
6 Ways to Improve Your Financial Health
That’s a scary statistic when you think about it. After all, you never know when disaster’s going to strike! And if you can’t afford to cover the costs involved, you may have to take on expensive debt or even file for bankruptcy.
The good news is that there are plenty of simple steps you can take to better your financial situation and avoid these kinds of unhappy outcomes.
Want to learn about some of the best? Well, you’re in the right place…
Today we’re going through 6 fool-proof ways to improve your financial health this year. Check them out!
1. Start Budgeting
Creating a budget might sound boring! Trust us, though, it’s a powerful tool for getting out of financial trouble. Considering your monthly income and outgoings will give you:
- A realistic idea of your current finances, and
- The chance to create an action plan to regain control of the situation.
Start by listing all of your typical outgoings each month and compare the sum total to how much you earn. You can then look at the difference and proceed accordingly!
For example, someone who spends more than they earn will need to cut back somehow. By analyzing their list of outgoings, they might see obvious saving opportunities that’ll free up capital for more essential things. Don’t know where to begin?
Don’t worry. Find a good financial wellness platform and it’ll help you every step of the way.
2. Cancel Subscriptions
Think about the subscriptions you pay for each month. One of the quickest and easiest ways to improve your financial health is to cancel any of them you no longer use!
Maybe there’s a gym membership you started in January and never utilized, or an Amazon Prime account you forgot to cancel after the free trial, for instance…
Whatever the case, you’re literally throwing money away if you keep them active! Make some calls, check your settings, and bring them to an end. The financial gains won’t be huge, but they’re a great place to build from.
Another sensible step is to identify anything on which you might be overspending. Common examples include luxury cars, smartphones, and apartments. Downgrading to cheaper alternatives can slash your outgoings without sacrificing functionality.
3. Pay Down Debt
Being in debt can hamstring any attempts at saving money. You end up paying the lender instead of yourself! Throw in sky-high interest rates and occasional late fees and setting anything aside for a rainy day can feel impossible.
That’s why paying down debt ASAP is so important to your financial health. Being more aggressive with your repayment schedule can make a big difference. You’ll get out of debt faster and free up capital to improve your financial picture in the process.
If you have multiple debts, focus on repaying the one with the highest interest rate first. Then turn your attention to the second-highest, and so on. This strategy will free up more money to pay down your debts each time, leading to a snowball effect.
4. Sell Your Unwanted Possessions
Most of us have countless items at home that we no longer want or need. We have attics, basements, garden sheds, and garages packed full of old clothes, tools, kids’ toys, electronic goods, and sports equipment. It’s just sitting there, gathering dust and taking up space!
If money’s tight, then now’s the perfect time to sort through everything and sell whatever you can. You’ll be amazed at how much money you can make this way! There could be thousands of dollars worth of possessions.
All you have to do is photograph each item, research what they’re worth, and create listings on sites like eBay to find budding buyers. Don’t want the hassle of selling everything online? You could also host yard sales, or sell things to your friends, family, and colleagues, instead.
5. Get a Second Job
Saving money is a crucial component of improving your financial predicament. But there’s a ceiling on how much you can save, right? You can only cut back so far.
By contrast, there’s no limit to how much money you can earn. That’s why finding new sources of income’s the real secret to building wealth. If you can get a second job, start a side-hustle, or negotiate a raise, then it’s a matter of time before your bank balance leaves the red zone.
6. Rent a Room
Your property could hold the key to your financial security. And no, you don’t have to sell or remortgage it! If you’re lucky enough to have spare bedrooms upstairs, finding a tenant (or two) to pay rent could bring in more than enough money to make life easier.
Why not convert an unused study, nursery, or storage space into a spare bedroom too? It’d be as simple as removing the old furniture and putting a bed and desk inside! Any additional rental space you create amounts to an extra income opportunity.
Of course, you might be reluctant to share your space with strangers. But think about the upside! As long as you find a respectful leaseholder, you can earn hundreds of extra dollars each month with minimal effort.
Time to Improve Your Financial Health
Few things in life are more stressful than financial struggles. You’re left in a state of constant concern, waiting for a monetary emergency to strike. Unfortunately, tens of millions of Americans are in this exact predicament right now.
There’s good news too though! Improving your financial health could be easier than you think. With any luck, the tips in this article will help you do it.
The suggestions in this article should be a useful springboard for improving your financial health. However, it’s far from an exhaustive list of ideas! For more tools, tactics, and ideas on income-generation, search ‘money’ on the website now.
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