2020 has been a tough year so far for many families. Many of us have lost income. Some of us have lost jobs. Those of us who run our own businesses have had to ensure very lean times as consumer confidence drops to historic lows. In many households, the financial future looks bleak. But even in these dark and worrisome times, we are not powerless to reverse our circumstances. We can take control of our finances and make little changes now that could lead to some big changes at the end of the year.
Just as you can carry out many of your own household repairs without the need for a contractor, you can repair many of the issues with your household finances without a financial advisor. It’s simply a case of knowing where you’re going wrong and acting accordingly…
You’re not keeping track of the little expenses
Ever get that sinking feeling when you check your bank balance online and it’s way less than you thought it would be? Often it’s not because you’ve been making any huge ostentatious purchases. It’s simply because you’ve failed to account for all the little expenses like your Monday morning latte or drinks with the team after work on Friday. Using a household budget template will make you feel less in the dark.
You’re ignoring your credit card debt
Credit card debt is an unfortunate reality of life for many families today. However, that doesn’t mean that it needs to cast a shadow over your finances forever. Only when we set our repayments to the minimum and ignore our credit card debt does it spiral out of control. Those appealing low or zero-interest introductory periods don’t last long. After they expire you could find yourself wasting a fortune in interest. Keep moving your debts to new cards with better interest rates. If you have multiple cards you may find that a debt consolidation loan saves you money on interest and repays your debts faster.
You’re relying too much on take-out
Of course, it’s nice to support local businesses. And in these scary times, we’re all taking a little extra comfort from our food. But you can enjoy restaurant-quality food at home without paying a restaurant or even take out prices. Find out who supplies your local restaurants. You may find that the good stuff like tai pei frozen food is available in supermarkets or even directly from the wholesalers. So you can enjoy the exact same food at a fraction of the price.
You assume that service providers will reward your loyalty
When your home insurance, car insurance, and household utility contracts expire you could waste a fortune by letting them roll over. Service providers will never reward you for your loyalty and may even hike their prices up because they assume you won’t take the time to find a better offer. Prove them wrong!
In fact, in most cases, you don’t even need to wait for your contract to expire. Your new provider will cover any charges associated with moving your business elsewhere.
You have too many subscription services that you never use
Finally, in an age where we have so many options when it comes to our entertainment, we can find ourselves paying so much for different streaming services that cutting the cable no longer seems like the money saver it once was. You should ask yourself if you really need that many subscription services, and at least consider putting some on hold for a few months.