3 Ways to Prepare for Financially Difficult Days
In this ever changing life we live, we can all expect to face rainy days in which things are not so bright and happy. This can happen to any aspect of life, but being financially low is probably one of the most devastating experiences one has to go through. When we have enough money in our hands it is easy for us to forget about the bad days which may come in the future. That is why it is important that you consciously make a plan in order to make it through your financially rainy days without too much suffering.
Saving for your bad days ahead is the most basic rule in the book of personal finances. However, having a regular savings account which you can frequently withdraw money from will never work in this situation due to mere human nature. Make sure you have a fixed deposit of funds or a savings account with a considerable compound interest that you do not withdraw money in any way unless it is an emergency. Keeping two account for short term and long term savings will also lead you to manage your expenses more since you have committed yourself to save more.
2. Earn more to save more
This is a strategy that may seem easier said than done, however, with the arrival and the reigning of the internet, it has become easier than ever to have a second income. Yes, you will have to put some effort and use some of your free time after your day job to do another job, it will always be worth it. Try to do a task with even a small income that is solely targeted to saving. That way you will be able to spend more of your day-job salary for things you enjoy doing.
3. Get out of debt
What is worse than going through a financially bad period of your life? Having to go through it with a heavy burden of debt.
If you are in a financially better position right now, use your money as much as you can in order to get off any debts you have. Put the fun and the luxury off for a while until you pay off at least the majority of your high interest jobs. You will thank yourself for this if you ever fall to an unexpected bad time of your life such as a medical emergency or losing a job. While you are at it, avoid taking loans, using credit as much as you can unless you can pay them off in a short period. Do not put yourself through the long term loan schemes that will take the most of your life to pay off.
Are you currently in a lot of debt? As Chinese New Year is coming around, many people are doing spring cleaning on your houses. You should also spring clean your finances! Consider getting a debt consolidation loan to repay all your other bills and debts. By only having one loan to handle, it will make it easier for you to manage.
Have a look through our list of money lenders for some one who will be able to assist you on this!