If you keep finding yourself in low-paying jobs, mired in debt and broke regardless of how hard you work, you might feel a sense of learned helplessness. That happens when you believe there’s nothing you can do to break free from a negative cycle.
But, it’s not destiny; it’s a mindset. Change your mind about how reality works. If you change how you think about money, you’ll stop struggling to make ends meet every month. Then you’ll quit worrying about what will happen if you can’t buy groceries next week or pay the rent this month.
Understanding how to make and manage your money will restore your peace of mind. It isn’t rocket science. Learning a few rules of personal finance is enough to get you there.
Here are three ways to get rid of your debt, increase your income, and create a financial safety net.
Get Rid of Your Crushing Debt
Debt has a way of ruining your life. Paying off the high interest on your debts drains your limited income, and worrying about due bills makes it difficult to fall asleep at night. Worse still, you settle for a job you hate because you don’t feel you have any better options.
Rather than continue to struggle to pay down your debts and feeling frustrated the more you fall behind on paying what you owe, consider getting free advice from a financial service like Strategic Consulting on what to do. Once the Strategic Consulting team understands your financial situation, they will set you up with a personalized debt relief program that works well for you.
Increase Your Income
While winning the lottery would certainly take care of everything, it’s unlikely to happen. You are also unlikely to suddenly get a raise at your job, stumble into a lucrative business opportunity, or get invited to join a profitable investment venture.
In short, rather than fantasizing about miracles, it’s far more practical to raise your income by increasing your skill sets, thinking about what you can learn to earn more. When you know more about some marketable skill, the economy will pay you more; but first, you must do the hard work of thinking about what you want to learn. Then you should find the time and energy to sign up for a class that will teach you these more financially rewarding skills.
Fortunately, there are plenty of educational opportunities for someone who wants to increase their skill sets. For example, it’s possible to learn more by getting tuition assistance benefits for going back to school, by spending a modest amount on an online course, or by signing up for some in-house training programs.
Create a Financial Safety Net
Build an emergency fund to increase your safety net. This is one of the most essential financial habits that you should adopt.
When you have an emergency fund, you’ll be able to take care of any unexpected expenses caused by an accident, breakdown, or loss.
Start small. Aim to save enough money to cover a month of living expenses. Once you’ve achieved that goal, then aspire to save enough to cover three months of living expenses. Finally, work your way up to save enough to cover six months of living expenses.
Set Goals and Make Plans
It’s easy to assume that everyone experiences financial blues if you’re surrounded by other people with financial struggles, but some people never worry about money. What distinguishes these affluent people from everyone else is goal-setting, planning, and learning from positive and negative results. While poor people drift from one desperate financial situation into another, wealthy people go from one income-earning opportunity to another.