Struggling to make ends meet can be very frustrating. Moreover, financial stress can bring a negative impact on almost every aspect of our lives. It can affect our thoughts, behaviors, and feelings.
Whether it’s the incapacity to pay bills, excessive debt, or failure to recover from a financial setback, some people still prefer not to file for bankruptcy. This is because they can’t afford to hire an attorney or deal with court fees. The good news is that we can avoid all these troubles on our own or with the help of a trusted bookkeeping company.
Avoid being bankrupt with these tips below.
Live Within Your Means
This phrase simply means that you don’t go overboard with how much you’re earning. Whatever you spend should amount to less than or equal your salary. A financially responsible individual knows how to budget their money. It sounds easy but in reality, almost everyone finds it difficult to manage their expenses. If you’re one of those people having a hard time with budgeting finances, here’s what you can do:
- List down your income and every amount of money you receive regularly, as well as all of your recurring expenses
- Know where your money is going
- Separate your needs and wants when doing a budget plan
- Try to not to compete with that new product or experience someone is enjoying at the moment
- Pay with cash as much as possible
- Keep an emergency fund
- Always save money
- Maintain a normal budget while you cut unnecessary expenses
- Practice choosing items that are made of Do-It-Your (DIY) solutions
- Don’t be too hard on yourself
- Be contented in life
Find Other Streams of Income
Relying on only one job may not be enough to cover your expenses or lifestyle. A lot of people these days look for a 2nd or even a 3rd job just to earn more. According to a survey conducted by Bankrate.com, 4 in 10 or 37% of American laborers invest their time on a side hustle. You may want to consider these strategies to get you some extra income:
- Diversify your investments, like opening a brokerage account or mutual funds
- Offer a product or service
- Invent a new item
- Start a passion project, like podcasting, writing a book, or holding a workshop
- Consider real estate investment
Pay Off Your Debt
Debt is a particular amount of money borrowed by one person from another. It can either be an individual or corporate transaction. Either way, a borrower must return the agreed-upon value to the creditor. How long does a balance transfer take chase? As you begin dealing with more aspects of your financial journey, you may encounter a balance transfer. A lot of individuals have rarely heard the term, let alone understand what it all entails.
Debt can be extremely stressful. That is why paying off debt is considered the secret to financial freedom and success. People who don’t have debts live with no worries. These easy ways can get you out of debt:
- Create a repayment plan
- Start with paying the most expensive debt first
- Pay beyond the minimum balance
- Sell things you don’t need anymore
- Negotiate with your creditor/s to lower the interest rates
- Do a balance transfer
- Stop or pause your credit card spending
- Get rid of expensive habits
Hire a Reliable Bookkeeper
A bookkeeper is someone who provides concierge services to look after an individual’s finances. If you hire the services of a personal bookkeeping company, you can enjoy the following benefits:
- Accurate finance record handling
- Opens your mind to a new financing perspective, such as fresh methods on cutting costs, budgeting and other aspects
- Save your time and overall costs
- Personal spending guidance
- Making sure you have a budget that best suits your lifestyle
Living in debt, especially the uncontrolled ones can bring paranoia in anyone’s lives. To prevent the possible hardships of drowning in debt and even filing for bankruptcy, there are a few guidelines to remember.
First, don’t overspend beyond what you’re earning. Next is to activate other streams of income, like getting extra projects or selling stuff. Another advice is to pay off debt right away and don’t let interest rates pile up. Lastly, it is highly recommended to consult professionals from a bookkeeping company to ensure you stay on top of your overall monetary resources.
Managing finances is no easy task. There will always be an urge to splurge on things we don’t even need. Whenever you are enticed with purchasing something, stop and decide about it for about 48 hours before purchasing.
While waiting, you can turn to Worthview for financial inspirations. Our blog contains various kinds of topics that are not limited to business alone. We also have articles about travel, health, lifestyle, home improvement, and more. Let us help you turn your back away from the traps of bankruptcy!
