With the rise of inflation and salaries remaining at bay, it can be easy to start struggling financially. I’ve struggled and have lived paycheck to paycheck most of my life, not having a dime in a savings account. After some time, I knew something had to change, and with some lifestyle changes, I managed to dig myself out of the hole I was in. These are my top 5 tips to end your financial struggles.
- I’m Not A Financial Advisor
Tips To End Your Financial Struggles
Everyone’s situation is going to be different. Some people are so deep in the hole that it may seem impossible to get out; however, these tips will hopefully give you ideas to get your life back on track.
Financial struggles are tough on a person. They may make you cut things in your life without thinking. Have you skipped a meal or two just to be able to pay rent? That’s not healthy and can lead to depression. That’s what I used to do. That brings me to my first tip:
Save money by eliminating unnecessary things
Many people don’t like change. So, making a lifestyle change will be hard, but no one said this would be easy. My first tip is to eliminate unnecessary things from your life. This can mean things like streaming services, gym memberships, and other monthly services. They are nice to have, but at the end of the day, they’re a luxury.
This tip will also apply to eating out often or purchasing new toys. I’m not saying not to buy anything at all; I’m just saying to limit it and try to keep a budget so that you can ease up on the financial struggles.
After canceling your unnecessary reoccurring services, sell some things you have around the house. Old things you don’t use as much may have value and be of use to other people. So, put them up for sale. I recommend using FaceBook Marketplace, OfferUp, or eBay.
After selling some of your things, try to pay your cards down or save the money for rent/whatever you need it for. Don’t purchase new toys with the money you’ve obtained. If paying off cards, try paying off the ones with the highest APR first.
Consider consolidating your debt
When you’re done selling, I recommend trying to consolidate your debt. If possible, open a new card or account to transfer balances that won’t have a high APR for some time. This gives you time to pay them off without accruing interest.
Refinancing a car is a great way of getting lower payments; make sure to talk to an advisor to check what the best options for your financial struggles are.
Split your paycheck
It’s sometimes better not to look at your bank account because if you see money in there, you might be enticed to spend it. This tip helped me tremendously because if it’s out of sight, it’s out of mind.
I have a 75/25 split on my paychecks. That’s a bit high, but even doing 10% or less would be beneficial. Send it to an online savings account where you can accrue interest on your balance and forget about it. When you have an emergency, log in and check the balance. You may be amazed at how much you’ve earned.
Work overtime/another job
Another tip that people most likely don’t want to do. Working overtime or having another job can definitely help with the financial struggles. This is not an easy task if your new job can’t fit into your schedule; however, it’s great to do it at least temporarily until you can get out of your financial hole.
A good way to combine this tip with the one above is to have one paycheck go to your main bank account and the other go into a savings account.
Pay more than the minimum on your debt
Paying down your debt is essential to eliminating your financial struggles. If you continued to pay the minimum balance every month, you will never get out of the hole you have dug for yourself.
Make it a goal to pay off twice the amount of the minimum balance every month and break it off into weekly payments. If you need help with goal creation, check out my post about How to Achieve Your Goals Without Giving Up.
Bonus: ask for help
A quick bonus tip is to ask for help. It’s okay to ask for help. Everyone struggles with something in life. I know it can be hard to ask others for financial help, and you may even lose friends because of it, but it’s important to be open with people and explain your situation. Also, make it a goal to pay them back or work towards getting out of the hole. Don’t just keep asking people for money; you’re not doing anyone any favors.
Conclusion
The financial struggles are real. For me, it’s what caused my depression, but after making a couple of lifestyle changes and asking my family for help, I was able to dig my way out to a more comfortable place in life.
To recap, my tips to end your financial struggle are to:
- save money by eliminating/selling unnecessary things in your life
- consider consolidating your debt
- split your paycheck to go to different accounts
- work overtime at your current job or get another job
- pay off more than the minimum payment each month
- and as a bonus, ask your friends and family for help
If your financial struggles are causing you to be depressed, like I was, I suggest taking a look at my post on How to Help Alleviate Depression From Your Life. Remember that this is a speed bump in your life. We are constantly being challenged and tested, and you will overcome it.
What financial struggle tips have helped you? Comment below with any tips you’d want to add.