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Growing up, I was always told to keep an emergency fund and to make sure that I had enough funds in order to pay for any unexpected costs. As an adult, I’ve learned how hard that is. Things come up and you have to take out of that emergency fund and then it’s pretty hard to build it up again. If this sounds familiar, I completely understand where you are coming from.
Over the past couple of months, we have learned that being financially stable is more important than ever. We do not know what tomorrow holds and who knows what could happen. Because each day going forward is changing, you should be extra prepared. To start growing your emergency fund, you first need to become financially stable. Here are a few tips to get there, if you are just starting out:
Pay Off High Interest Debt
Poor finances is one of the most common ways to get stressed out and unfortunately, America in general, really struggles with poor finances, typically starting when in college. A lot of kids jump into college, rack up student debt, and have to live off of high-interest credit cards. Of course, there are some instances where some debt is good, but for the most part, high-interest credit card debt is something that you want to try your best to avoid. You do not want to have to live paycheck to paycheck, stressed that you will not be able to put food on your table.
That’s why the first step in your game plan should be to pay off all high-interest credit card debt. Honestly, I consider this step to be a first – even before filling up your savings account with your emergency funds. It might be a smart idea to save a bit so that if you do have an unexpected cost come up, you don’t need to put it on the cards that you are working to pay off.
Cut Costs Where You Can
I know you don’t WANT to cut out any costs. Who wants to get rid of their TV subscriptions and gaming subscriptions? Not me. But, cutting costs is a great step to becoming financially stable. The extra cash that you would have been spending on these things can go directly towards your high-interest debt, or to your savings account. Figuring out how to cut spending is the hard part because you may not realize where you are overspending and it may be hard to break habits. However, there are ways to reduce your outflow so you can devote more money to your goals and less to purchases that don’t improve your life or long-term financial situation. You can make all the budgets you want, but if you don’t stick to them, they’re nothing more than a wishlist. One way to force yourself to live within your means is to switch to spending cash only — at least for a while. Studies show that people tend to spend less when they use cash and if you do not use credit cards, that means that you can’t spend above your means, no matter how much you want to do so. Another easy tip to reduce your spending is to erase your credit cards from your computer. It’s easy to click “buy now” if your cards are saved. Make it a little inconvenient to spend and you will find that you are spending less.
Get Rid Of Things You Don’t Need
Last but not least, why not make some extra cash off of selling things that you do not need anymore? Have a yard sale, sell your clothes on websites or to places such as Cillies, or get rid of your valuables by visiting companies such as Prestamos por Oro. Located in Atlanta, GA, Prestamos por Oro are experts when it comes to being a jewelry buyer in Atlanta. They are reliable, trustworthy, and give the most amount of money for your valuables such as gold, watches, and more. They buy valuables, but if you are not ready to give them up just yet, they are more than welcome to provide a collateral loan, as well. The great thing about collateral loans is that if your finances are not in the best of shape just yet, you have no reason to worry. Since you are receiving your cash in exchange for your valuables, there is no need for timely credit checks. Prestamos por Oro has been in business for more than forty years and they are ready to help you make your financial goals happen!
I don’t know about you, but after these past few months, I will always be financially stable going forward and I’m dedicated to teaching my kids how to make sure that they are financially stable as they grow up, as well. I hope these tips help you!
