5 tips to improve your financial well-being today
Did you know that nearly 80% of American workers are living paycheck to paycheck? Each month, money comes in and each month, they watch it all go out.
What’s the problem? Do Americans not make enough money? Are things in our country too expensive?
The problem is our spending habits and our desire for immediate gratification. We use borrowed money through credit cards and loans to finance what we can’t actually afford. We accept paying thousands of dollars in interest for the luxury of having things now.
Unfortunately, this way of living cripples our financial well-being. It’s not difficult to get into this position. The tricky part is getting out.
We want to help. Keep reading for our top tips on how to take charge of your financial well being.
1. Start a Side Gig
If you need to make more money, there’s a simple solution – work more. You may not be able to pick up more hours at your current job, but you can ask for a raise. If that’s not an option or a viable solution, you can find a side gig.
You can either find a part-time job or start your own thing. There are plenty of opportunities out there, some require creativity some don’t. Here are some suggestions:
• Drive for Uber or Lyft
• Clean houses
• Do landscaping jobs
• Walk dogs
Find an online freelance job (content creation, social media management, etc.)
Play to your strengths and skills. However, also pay attention to in-demand services. For example, it may not be glamorous but dog owners would pay decent money to have a bi-weekly waste removal service.
2. Reduce Your Monthly Expenses
You can also improve your financial well-being by limiting your monthly expenses. Most people don’t realize how much money they spend each month on non-essentials. They know they don’t have money left at the end of the month but aren’t sure where it’s going.
Dig into your bank and credit card statements to get a clearer picture of your spending habits. Start eliminating unnecessary expenses such as coffee shop coffees, dining out, impulse buys, online shopping, unnecessary subscriptions, unused memberships, etc.
3. Consolidate Your Debt
One of the best financial well-being tips is learning how to manage your debt effectively. Ultimately, you should try to pay it off as quickly as possible. However, in the meantime, it may be beneficial to get a debt consolidation loan.
Find a legit company to see about taking out a low-interest loan that can absorb your highest interest debts. This will give you a lower overall monthly payment and reduce the amount of money you’re paying toward interest.
4. Find Alternative Ways to Make Money
Another strategy for improving your financial situation is finding extra ways to make money. We already talked about finding side gigs, but there are other options that won’t necessarily require putting in more work hours.
For example, if you have an extra vehicle or rarely use yours, you could rent it out. For that matter, you could also rent out extra room in your home.
You could sell unused, unwanted, or unneeded items from your house. Most of us have way too many possessions as it is – why not sell what you don’t need and make some money?
5. Downsize Your Life
Finally, to define financial well-being is to understand that you must live below your means. You need to make more money than you spend each month. To improve your financial outlook, you may want to consider downsizing your life.
Find a smaller home with a lower mortgage or rent. Sell your new car and find a reliable, but older vehicle.
Looking to Improve Your Financial Well-Being?
If you want to improve your financial well-being, it’s going to require work and sacrifice. You didn’t get between a financial rock and a hard place overnight. Fixing your situation will take time and consistency, but you can do it.
If you want more advice, be sure to check out some of our other articles before you go. Our website is full of informative and valuable articles for people just like you.