Financially tough times happen to the best of us. Not only are they incredibly stressful, but they can be debilitating. Don’t let your family suffer when the going gets tough. Here are four ways to get through hard times without getting into debt:
Avoid loans
Fast cash loans may seem like a shiny solution when you just don’t know where the money will come from, but you need to be wary. Yes, it may seem like a financially good decision now, but it could hurt you worse in the long run with the outrageous interest rates that you can only find in the fine print. If you need to borrow money, seek out no interest money loans or consider asking a trusted relative that you can repay on a time frame that works for both of you. If you do have to take out loans, have a plan in place on how you will repay it and how you can reduce the amount it will cost you. A good rule of thumb: pay in cash.
Budget
A budget is a tool that lets you see how your money is coming in and determines where it should go. Without this financial scrutiny, we may inadvertently spend too much eating out and not be able to afford the medical bills coming in. By allotting each of your needs and wants a specific column, you can spread your income appropriately so that you don’t have unbalanced finances and need to bail yourself out with debt. Remember, debt is not your savior. Keeping a budget and leading a sustainable lifestyle are great ways to avoid falling in the traps of prolonged debt. Find tips and tricks to make your budget work the best for you to keep you financially secure.
Live frugally
A budget only works if you stick to it, but how can you adjust to a new allowance that is only a fraction of the amount you are used to spending? A frugal lifestyle is the answer. By distinguishing between wants and needs, you can filter the things to buy in your life and only consume what you and your family actually need. This, of course, doesn’t sound fun. But learning what it means to be frugal can make this easier. With practice, watching what you spend money on gets easier with time. And living frugally doesn’t mean you have to be miserable.
Find joy
Like already mentioned, budgeting and living frugally don’t have to suck all the fun out of life. Happiness does not equal spending money, no matter how many times that is pitched to you by advertisers. You can find joy in any moment without spending a dime. Walking around the neighborhood with your family, hosting a board game night, or trying a new class at the local library are all free options to bring the fun in your life. Find the thing that makes you happy and simplify it to the point that it still brings you joy without being expensive. Trade the gym membership for a few gardening tools and achieve the same result. Cheap or free alternatives will keep you sane while spending money is skim.
As expenses rise, realize that it can be made temporary by the power of budgeting and a frugal lifestyle. You can’t control everything, but you can control how you respond, and that is where your true power lies. Which of these four ways will you try to avoid debt when times get hard?
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