In an age where the price of everything is soaring while people’s salaries stagnate, it is becoming all too easy to find yourself immersed in debt very quickly. While some surprise and unexpected situations happen that can leave you without a great deal of cash left over, there are certain things that you can do to help minimise the amount of debt you concede. Here are some of our top tips for keeping debt at bay, regardless of your situation, to maintain your cash flow stability…
Create an emergency fund
Ideally we would all like to be debt free, and one way of seeking to achieve this over an extended period of time is through setting up an emergency fund where you put a lump sum of money aside each month. This account should be used for depositing money only and should only be turned to if you really find yourself struggling to make ends meet in the event of a financial emergency.
Work out a budget and stick to it
The easiest way to only spend the money that you have is through working out a practical and feasible monthly budget that breaks down all of your expenditure and income and works to balance the two. Why not explore some of the free money calculator tools online or explore using an app to keep track of your spending?
Check which benefits you may be entitled to
If your level of income is low or you have certain health issues that are preventing you from taking on full time work, then it may be well worth looking at your options when it comes to claiming benefits. While some people that there is a stigma attached to benefits claimants, it is important to remind yourself that they are put in place for a reason and are designed to help those who need it.
Avoid late payments of any kind
When you have multiple outgoings at any one time, it can sometimes be hard to keep on top of all of them, which is where trouble can begin. By marking off all of your bills, utility payments all other expenses on a calendar or spreadsheet you will be better able to see what you have left to pay before your next payday. Should you ever find yourself in a position where you are a little short of money, then consider taking out a same day loan which will help to consolidate existing payments. Once you have paid off all of your expenses you can then pay off your short term loan quickly and easily.
Ask yourself what you really need
It’s something we are all guilt of and that is finding excuses to justify our wants as needs. While we need food to sustain us, we certainly do not need to purchase an additional handbag or pair of trainers. If you are struggling to make ends meet then why not look at things that you can cut out of your monthly expenditure. While it will be hard to resist the temptation of purchasing things that you have become accustomed to, improving your level of restraint will benefit your wallet significantly in the long run.
They main thing to remember when it comes to avoiding debt is being able to live a comfortable life within your means while also being able to put a little bit aside for times when you cannot help but be a little strapped for cash. Through making some mindful changes and making the effort to stick to guidelines you set yourself at the start of the month (refer back to the budget!), you will soon find that you become more free of debt as you go on.