Your financial situation is a subject that is of utmost importance when it comes to planning out your life, goals, and dreams. You are going to be limited as to what you can do if you don’t take control of your finances. There are many possibilities that can allow things to get out of hand, and you don’t want that to happen. Things may need to change for you this new year. Continue reading for some helpful advice to start assessing your personal financial situation and gaining control.
What your financial situation’s big picture?
The first thing you need to do is to take a look at the big picture. What is your income? What bills and expenses do you have? Get your statements and all documents together in order to see where you stand. Examine all evidence, and get ready to determine a plan of action. While you may be doing many things right already, doing this is going to bring about changes. It’s time to see what is next on your agenda.
How are you spending your money and do you have a budget?
Think about and look at your spending habits. What do you spend most of your money on? Think about changes that should be made. How can you cut your expenses? Take notes, and work on improving your budget. Make sure that you’re living within your means. Formulate a new budget, and make sure you’re constantly looking out for budget cuts that you can make. Budget changes will happen naturally, but you also want to be on top of them. One app that helps with budgeting and understanding your financial situation is TrueBill.
Smart financial goals to consider
Work on setting financial goals once you have established your budget. If you’re in debt, establish short-term and long-term goals that you can work towards positively. Work towards saving as much money as possible, and always pay yourself first. You need to have at least 6 months’ worth of living expenses saved up to fall back on just in case you lose your job or costly unexpected expenses arise.
Long term budget and financial planning
Plan for your future. Chances are you’ll eventually want to buy a home, and you’re definitely going to want to retire someday. There are also other major purchases and life events, such as vacations that will take place. Save not only for emergencies, but save to start to accumulate wealth so that you can do the things you want to later in life.
Options to improve your financial situation in 2022
Even if you just get a temporary position or a side hustle that brings in a few extra hundred dollars for a few weeks, having a second job is a fast shot in the arm financially. If possible, get something permanent that will fit into your lifestyle and schedule and make it a part of your economic recovery. You can quickly pay off high-interest loans and credit cards, and then start building a nice nest-egg for yourself and/or family. Becoming an entrepreneur is worth putting in the extra hours in exchange for the enormous reduction in stress that you have to endure!
Side hustle ideas that pay
In the spirit of the financial rule to have more money coming in than going out, here are some side hustles that may just be the thing for you to help your budget.
There are several websites available where you can pick up freelance writing jobs. (Such as Fiverr and Upwork) These sites will help protect you from scammers. Overtime, as your experience grows you can be bolder in asking for higher rates and more difficult jobs. The opportunities for financial growth are endless, and you can start writing your own blogs and books to bring in even more income.
You could start your own consulting business. If you are an expert in a specific topic, then this might be a wonderful opportunity for you. You can help others find the opportunities that are right for them. The most important skill is going to be networking. You will need to keep a good influx of new clients knocking on your office door. LinkedIn is a good place to begin networking professionally.
START A DAYCARE
If you have the right type of home, you can dedicate part of it to a daycare. This can be a great way financially to be able to stay home with your kids in their younger years. You can even have your friends start as your first clients. This will be more expensive than you would think as you will need lots of permits and other paperwork before you can get started. However, once you’ve got the bureaucracy under control this can really be a good opportunity for you.
SELL PRODUCTS ONLINE
One simple way you can start bringing in more money is to become a reseller. This is great for people who enjoy collecting or bargain finding. You will need to build a good online store on Ebay, Etsy, Amazon Fulfillment or another similar site.
Additionally, you will need to spend a lot of time researching and learning the prices of items so you know when you go shopping that you will be able to make a reasonable profit on an item.
Selling other people’s products online is simplified with affiliate marketing. Rather than dealing with your own inventory, you sell other company’s products and earn a commission. Most affiliate programs are free to join and offer a vast variety of products to market. For more information, go to our Affiliate Programs Page.
If you have extra free time there are options such as DoorDash, or Instacart if you want to pick up some delivery work. Another option, especially if you have a car you want to use, is Lyft or Uber. While this is not going to work for yourself, but you can decide when and how much you want to work.
Get financial planning assistance if you are in a good position
If you have the money, and you’re starting to get control of your finances, it can be a great idea to speak with a financial adviser. They can offer assistance in your financial planning that will benefit you immensely. As you start to save even more money, you might need investment or retirement planning advice. While financial advisers charge a fee, it can be well worth the money.
Are you ready to take control of your finances this new year?
Dealing with your personal finances can seem overwhelming if you don’t know what you’re doing. You have to make sure you seek out the right knowledge in order to figure out what you’re doing. Hopefully after having read this article, you feel like you’re much more equipped to head in the right direction, and to manage your finances correctly from here on out.
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