Politics and Business
How to Save Yourself From Financial Trouble
Money makes the world go round. Even if you wish it didn’t, it’s an unfortunate fact of life and one that we all have to live with. Managing your finances is an important part of keeping your life on an even keel, helping you to stay happy in your job, home, and social life. However, sometimes this is easier said than done – unexpected events can quickly sink a hole in your bank account, and lead you down the path to debt and financial trouble. To make sure you’re keeping on the right track, here are a few simple tips to save yourself from financial trouble so you can manage your life finances in a healthy, stress-free way.
Always Keep a Cushion
Of course, we’re not talking about a comfortable, couch cushion here – although those are good as well. A financial cushion is a pot of savings that you keep for a rainy day. It’s a good idea to set this up automatically so you don’t forget to deposit funds in it. A monthly amount that comes out of your paycheck might work, or take a look at the multiple apps available that can use AI to judge how much you can afford to save each month, and put it away for you. Having a pot that you only use in real emergencies ensures you will never be caught short, and that major events won’t cause a long-term effect on your financial health.
Take a Leaf From the Book of Business
Businesses have developed many clever ways of managing finances, from small companies to huge conglomerations. It makes sense – these bodies are having to manage and keep track of thousands of transactions from different departments every day. Yet you can use some of their techniques to help you with your day-to-day finances. For example, cash flow forecasting can help you look forward and ensure you’re not surprised by unexpected bills. You might not go out for that fancy dinner if you remember that you’ve got that huge yearly bill coming out at the end of this month. There is a lot that individuals can learn from businesses about managing accounts, so look to your own professional practices to model yourself on – or search the internet for accountancy tips. There’s plenty out there!
Don’t Be an Ostrich
Again, the literal meaning of this is also good advice to follow – no one wants to turn into a giant, flightless bird. However, in this context being an ostrich means burying your head in the sand and ignoring a problem in the hope that it goes away. With financial trouble, this never works. Instead, the problem is likely to grow and become even more unmanageable whilst you’re looking away, accumulating interest and debt. It’s important to always confront the issues head-on and as soon as possible, as difficult as that might feel at the time. Doing this will ensure that nothing grows beyond what you can handle, and allows you to keep control over the situation.