If you’ve never been great with money, it can sometimes be difficult to know where to start. Having bad credit can mean that you feel a little stuck when it comes to getting a mortgage, to getting credit, to financing your car and so on. But the truth is that there are solutions to every problem if you look hard enough. Here are some solutions to getting back on your financial feet.
Stick To A Budget
First of all, it’s important to make and stick to a household budget. List all your expenditures along with the amount of money that comes into your home every month, and make sure that your outgoings don’t exceed your incomings. Seeing everything written down will make it a lot clearer to you and it might start to become obvious where you’re spending too much – those Starbucks lattes might be delicious, for example, but they really start to add up if you have them every day.
Pay Your Bills When You Get Them
One thing that will make you feel like an incredible bona fide competent adult is paying your bills as soon as you get them. It’s tempting to stash them into a drawer and wait to pay them until you really have to, but that really isn’t the smartest way to live life. Paying them immediately will help you stay organised and will also mean that you won’t get to the end of the month with a huge debt hanging over your head that you have to pay.
Cut Out Non Essentials
It’s time to cut back on your everyday expenditures. If you have an expensive gym membership, think about that hard and consider whether you could use internet tips to practise yoga at home instead or start to participate in Couch To 5K. If you go out for dinner regularly, start to stay at home more often or look out for coupons or deals that will help you get free starters or desserts whenever you go out.
It’s easy to start despairing when you look in your bank account and realise that it’s quite empty or when you look at your credit rating and consider just how low it is but remember that all is not lost. Shop around for finance deals – if you’re getting a new car talk to a company that specialises in bad credit auto loans like this one: https://www.approvenow.com/bad-credit-auto-loan/ and remember that no matter how hopeless you feel, you will get a deal that works for you eventually.
Make Sure You Save
Finally, if you’ve ever been in bad financial circumstances then you’ll know how important it is to have that cushion of savings behind you. It’s hugely reassuring to know that you have something to fall back on if something happens that’s out of your control like redundancy at work, car repairs, or illness in your family. Knowing that you have savings will help you take more chances and risks to earn more money in the long term.