What to do if You’re Losing a Grip on your Finances
As countless people continue to be hit by recession blues, it can be easy to feel you are losing control of your finances. Many people have little to no disposable income left. The third annual Priorities of Life Index from Scottish Widows recently revealed that 16% of the British public (8.2 million people) had no money left once they’d covered the cost of all their essentials, including necessary payments such as mortgages and groceries.
At this time, you may find it impossible to save any money and yet you are worrying for your future and your future expenses. It may have gotten to the point that you feel you are losing a grip on your finances at present, and are robbing Peter to pay Paul in order to keep yourself afloat.
If this is the case, we have a few solutions for you.
Clear out
It may not seem like much, but what is worthless to you will have value somewhere else. Music Magpie is a handy site for getting rid of your unwanted items in exchange for cash, and they take much more than just your old CDs.
There are plenty of clothes, books, DVDs and games in every home in the country, taking up valuable space unnecessarily. Be ruthless about what you no longer have any use for, and you will end up with a nice wad of cash to put straight into your bank account.
There are other ways you can make your home work for you, by renting out a spare room. You could even take on some part-time work online by looking at freelancing websites as a means of boosting your income.
Make a budget:
You should make a budget and stick to it. Create your budget around your money managing experience. Consider this: do you do better with money week-to-week or on a monthly basis? Be honest with yourself and do whatever works best for you. Do not allow yourself to spend beyond your budget and you’ll soon see where your money could be saved.
Professional debt help
If you find yourself in a position where simply boosting your current income isn’t enough due to debt struggles, then a professional debt management company could help you by talking you through your finances and helping you create a financial management plan.
Getting a little bit of help seeing where your money is going and where you can save can be invaluable when getting back on top of your finances. If you find yourself in a more serious situation where simply getting help managing your money isn’t enough, then you could consider declaring bankruptcy. Although this will have a major impact on your finances and credit in the future, it is possible to improve your credit slowly over time as you get back to basics.
Category: Family Finances
