When things seem certain in our lives, it is easy to feel less anxious and more in control of our financial situation. But how can you manage your finances when things are less sure?
In the past few years, we have all seen interest rates on the rise, at the same time as we have experienced a cost-of-living increase. This has meant that feeding ourselves and housing ourselves (whether via a mortgage or a rental) is more expensive than it once was.
And on top of this, properties generally have been harder to find at a price we can afford. This new reality has created stress and anxiety for many Australians.
Are there ways to deal better with this financial stress?
While we can’t control the economy, there may be some things we can do to take control of our financial situation:
- Create a budget
There are many budgeting tools online that can help you work out an affordable budget you can stick to. By thinking about what you currently earn after tax, and what you currently spend, including for your debts, you can start to see where you might be able to streamline your spending or create more income, so you feel more secure.
- Eat out less
The cost of eating out has also increased, so if you save restaurant or café meals for special occasions, this will leave you with more money at the end of the day as a buffer.
- Repurpose clothes and save the planet
There are so many options available to find and use hand me down or second-hand clothing more consciously. By doing so, you are not only helping to slow down the mass production of clothing that is often completely unused, but you are also helping your everyday budget.
- List items for sales that you don’t use
Facebook marketplace and other online websites are a great tool to help you sell any items of clothing or furniture that you no longer need. This can be a way of not only decluttering your living space, but also putting a few dollars into your pocket that may help if an emergency arises.
- Check your subscriptions
Its easy to sign up for a streaming service, magazine, newspaper or podcast and then forget about it. Make sure the subscriptions you have are being actively used or cancel them. This will add to the pool of money you will have spare for a rainy day.
- Grow some food
Even if you only have a tiny balcony space or a windowsill in the sun, it is possible to grow some herbs (which can be expensive when bought in bunches), or greens to add to your dinners. This can also be a fun activity for kids to participate in and eating your own produce is a great way to add vitality into your diet.
- Try to avoid getting more loans
There are so many short-term loan options that may seem tempting in a crisis, but why not see what else you can do to free up some cash from somewhere else before taking out a loan. A family member may be able to provide you with some assistance, or you may be able to pick up another shift at work. Think of other ways to deal with a cash flow problem and making further lending the last resort.
Need help?
When creditors are calling, and its hard to pay your debts on time it can be overwhelming. If you need help with your debts, Solve My Debt Now are here to assist. Our team are kind and non-judgemental and will talk through your current situation and about how we might help. You can also call the National Debt helpline.
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Book your FREE Consultation now and talk to one of our qualified SMDN Advocates that will help put you back on the road to financial freedom!