Financial literacy isn’t something that’s taught at school most of the time. As a result, plenty of adults wind up in difficult situations. Once there, they might not feel like there’s much they can do. Getting out of a tough spot is possible, but it’ll take some work. The sooner you learn how to manage your finances, the sooner you’ll be in a better situation. Luckily, the basics of financial management aren’t all the difficult to pick up. So, check out the following advice. It should provide a little perspective.
Avoid High-Interest Credit Offers
Above all, avoid paying high interest rates. Interest is something finance providers charge customers for giving them access to credit. Usually, it’s expressed in terms of APR. That means the annual percentage rate. Some credit cards have APRs as high as 30%. Thus, for every $100 borrowed, you’ll pay $30 of interest annually. That might not sound like a lot, but it adds up much faster than you’d expect. For $1,000, you’d be paying around $300 of interest each year. Today’s rates can be as low as 2% on a good mortgage. So, use that as comparisons whenever you’re comparing different credit offers. Anything above 15% is usually not a good idea. As always, avoiding debt is the easier way to stay out of it.
Apply for Jobs With a Higher Salary
Right now, there’s a massive demand for labor in the economy. Better yet, wages are the highest they’ve been in years. So, if you feel like you’d like to switch jobs, now is the time to look for them. Earning a little more money each month can make a huge difference. Check out a few online job boards, and apply for anything that seems worthwhile. Employers are looking for new employees harder than ever, so you might be surprised.
Wait Before You Make a Purchase
Most of us spend more each month than we’d like. However, besides the small purchases, we also make large ones that are unnecessary. Anytime you’re planning on spending a lot, wait for a little while before pulling the trigger. A lot of the time, you’ll realize that you don’t need to spend the money. Also, you might want to look around to see if you can find a better deal. Saving 5% on a $10,000 purchase would leave you with an extra $500 in the bank. So, spending a little time to find the best deal can really make a big difference.
Shop at the Discount Grocery Store
Even people who cook at home spend more than they have to. Obviously, cooking at home is a lot less expensive than eating out. But, you can save even more by being frugal at the grocery store. In a lot of towns, there are discount grocers who offer very cheap prices. You might not even know about them unless you look.
Talk to Someone About Filing Bankruptcy
Unfortunately, people get themselves into financial difficulties before they even realize something is wrong. Then, no matter what they do, they can’t get out of it. Most of the time, this happens whenever people lose their jobs, especially during a volatile job market. They were perfectly fine until they lost that income. Suddenly, they find themselves in a tough situation while already stuck in debt. Soon, they fall behind on payments, lowering their credit scores. At that point, it can feel like you’re drowning. However, there is an option available for people in that situation. Declaring bankruptcy can clear your credit of all your accounts. That way, you’ll have a totally blank slate again. If you think bankruptcy might be right for you, speak to a bankruptcy lawyer. They’ll talk to you about your situation, and then you can decide what to do from there.
Managing money is a skill, and it’s something you can develop. Anyone who spends time developing that skill set will be happy they did. It’ll pay dividends, and you’ll have a lot less financial stress during your life. Start by researching the basics of money management. Then, implement what you’ve learned. Over time, those new skills will become second nature.
Article Written by: Tracie Johnson