Many people feel that their financial situation has gotten out of control. At that point, they just sort of give up and can fall into worse debt as well as depression in many cases, eventually not being able to afford even basic things that they need. To avoid this, the best course of action is to continually take small steps in the right direction.
Five of these small steps might include things like working with a debt relief company, using better budgeting, taking part in the cheap car theory, selling off your excess stuff, and prioritizing access over ownership of certain types of things.
Especially for the current generation, debt is a problem, much of it stemming from the price of education. If you’ve got student loans or even credit card loans that have ballooned, working with a debt relief company can be the single best thing that you can do to get yourself into a more financially stable place. By pulling debt all together into a single place, the payments can often be made much more realistically.
Simply using budgeting apps can help any person at least understand their income and expenses on a monthly or weekly basis. It’s surprising once you see a detailed report of your bills or other expenditures, how quickly you can start making better decisions about what you can or can’t afford. Especially when it comes to subscriptions, entertainment bills, or energy bills, there are lots of ways to trim down hidden extra money that can really add up over time.
The Cheap Car Theory
One of the best places to start saving money is on your vehicle. And as long as your ego doesn’t get in the way, if you buy the least expensive car possible that will still get the job done, you could be on your way to saving many thousands of dollars without any real detriment to your lifestyle. This is one of the secrets of money-saving professionals.
Sell Your Excess
Having excess stuff around does two things. First, it costs money to keep or maintain it. And second, you’re losing money by not selling things to people who will use them. This includes stuff like unused stereo or sports equipment, all the way through seasonal clothes that don’t serve a purpose anymore.
Go For Access Over Ownership
It’s expensive to own a pool. It’s much cheaper to buy a membership to a gym. It’s expensive to own recording studio equipment. It’s cheaper to buy a session every once in awhile if you need to do something specialized. This same mentality can be used in many different aspects of life in order to really pull down expenses over time.