There’s no doubt that 2020 was a challenging year for everyone’s personal finances. With job losses, businesses scaling back to reduce costs, and some industries struggling more than others, almost every household felt the squeeze of the pandemic in some way or another.
In some instances, there’s very little you can do when financial trouble occurs; sometimes, circumstances simply conspire against us, and we can only muddle through as best we can. However, there’s almost always something you can be doing to improve your financial health, even if you’re being hit by the slings and arrows of outrageous fortune. Here’s how you can take care of your financial health in 2021.
Look into personal loan options
Whether you’re in need of a short-term or long-term loan, there are almost always online personal loans that can help you. Simply find a reputable, well-respected provider, choose the amount you require, and go through the application process. Of course, you should make sure that you can manage repayments; loans are great for short-term financial worries, but they shouldn’t be your first port of call if you’re in long-term financial distress. Still, it’s worth researching whether loans could be the right option for you.
Create and stick to a strict budget
Budgeting is one of the most essential skills when it comes to financial health. Your budget is a very personal thing, so we can’t instruct you on exactly how to craft it, but it should take into account all of your income and expenditure, however big or small. It’s important to be truthful with yourself, too; don’t exclude anything because you feel ashamed or you think it’s insignificant. After creating your budget, you need to try and cut things out of your spending that are inessential for you, and it’s important to be harsh with yourself when doing this as well.
Cut back on travel costs
One of the most costly expenses for many people is the way in which they travel. Running a car can be prohibitively expensive, and if you find yourself in financial trouble, this may be money you simply can’t afford to spend. Take a look at your day-to-day life and ask yourself whether the car is strictly necessary. Are there any places you could get to by walking or taking public transport? Could you car-share with a friend or family member? If you absolutely must run your car, is there any way you could cut back on the number of journeys you’re taking per week?
Don’t be ashamed to ask for help
Your friends and family will understand if you talk to them about your financial worries. Everyone has been there at some stage or another; even those who are relatively comfortable still worry about money, so it’s a universal concern. Even if those around you aren’t able (or even willing) to assist by giving you money to tide you over, they may be able to help you by giving you tips on how to manage your money, or life hacks to help you spend less and save more. Surrounding yourself with an understanding support network has no drawbacks.
Look for different income sources
Sometimes, income streams can reveal themselves in the most unlikely of places. It’s unfortunate that multiple revenue sources are required in today’s economy, but it’s true, so finding a side hustle never hurts. Do you have any skills you could teach to budding students? Are you skilled in software development even if it’s not your regular job? Do you have property you could be renting out to travellers? These are all options for making a little extra cash. If you employ multiple streams simultaneously, you’ll be much better off, and you could even find your next big career move in the process!
Take up less costly hobbies
It’s no secret that many hobbies are costly to maintain. If you’re fond of gaming, for example, or you love cinema, you’ll know that there’s always a new subscription service or new title to try out. Try cutting back on the cost of your hobbies if you need to look after your financial health. This doesn’t mean giving them up altogether; rather, just be savvy with where you’re spending money. If it’s not working out, you could look into taking up altogether less costly hobbies. One example could be switching going to the gym for running outdoors or lifting at home.
Don’t buy branded goods
Brands often markup their prices despite the product itself not necessarily being massively superior to its competitors. This is mostly due to name recognition, so if you’re willing to forgo your usual branded shop (whether it be in a supermarket, for clothes, or anywhere else), you’re likely to find some pretty surprising bargains. Take a look at the budget we built earlier and ask yourself if there’s anywhere you could make some changes. Even if you don’t initially take to the new alternatives, you’ll quickly become accustomed, and the savings you’ll make are well worth it.
Be careful with credit cards
Contrary to what many may say, the credit revolution hasn’t been beneficial for every consumer. For everyone who’s been able to take advantage of the immediacy and convenience of credit cards, there’s someone who’s been left in crippling debt. If you’re looking into signing up for a credit card, make sure you read the terms of the card and the policies of the provider extremely carefully. It’s not necessarily a bad idea to have a credit card in and of itself, but you need to make sure it’s working for you and you’re not simply adding to your money woes.
