Are you struggling to have cash left over at the end of each month? After having deductions taken out of your paycheck for tax withholding and health insurance premiums, it can seem like your take home pay is just never enough. First you have to pay rent or mortgage repayments, credit card payments, and all of our different utility bills. Then, during the course of the month, you have to buy food and gas and pay for auto and home insurance too. All of these expenditures leave most individuals or families with almost nothing in the bank. It’s frustrating, and highly stressful, to be working so hard and still have to wonder how you can possibly pay for everything. If you fall into this category, the following are some tips to help improve your finances and reduce stress.
Choosing a Life Settlement Company
If you want to get some relief and help eliminate all the stress of constant money worries, you have to make significant changes. You also need to build up the money you have in the bank so you can give yourself a financial cushion that helps take the stress away. If you have life insurance coverage, one of the best ways to bring in the cash you need is to work with a life settlement company to arrange the purchase and sell your existing policy. You’ll want to take the time to do your research so you make sure you fully understand the process and pick the best life settlement company for you.
Pay Off Your Outstanding Credit Card Debt
One of the best ways to tackle financial stress is to reduce your debts. High interest credit card debt takes a lot out of your budget each month. Even though banks are able to borrow money from the government at near historic low rates, they routinely charge you 18 percent interest. Worst of all, if you simply make minimum payments, it can take years or even decades to pay off what you owe. Start by looking at your credit card statements. They’ll show how long you’ll have to pay if you make only the minimum payment and how much more quickly you can retire the debt if you pay a little more than that. You should also consider using funds from the sale of your insurance policy to pay the balances down.
Reduce Your Monthly Utility Costs
In recent years, utility costs have soared in many parts of the country. Monthly expenditures for water, sewer and trash, electricity, and gas have risen at a fast pace. All of the expenses for telecommunications, from cable to internet and cell phones, only add to the problem. You can save money on electricity or gas by turning the thermostat down in the winter and setting it higher in the summer. You could also look at installing a whole house fan, which uses the natural cooling at night to dramatically lower your need for air conditioning. To save money on communications, it pays to shop for special offers on cell phone plans and Internet service.
Delay Impulse Purchases for 30 Days
When you are working really hard for your money, it’s easy to feel you deserve to be rewarded in life. Buying the latest TV or a new sound system can make us feel good in the moment, but these impulse buys will only increase financial stress. It’s important to break this cycle of instant gratification. You can change your spending habits and help reduce your anxiety over money by delaying impulse purchasing for 30 days. If you want a big-ticket item, make a note of that but wait a month to make any potential purchase. You’ll often find that the emotional craving for the new item will pass during that time.