Since time in memorial, the topic of money has always been a taboo; mostly reserved for intimate conversations within the family circle. And even as the economic recession forces the majority of U.S citizens to cut back and downsize, a number of individuals still feel guarded about seeking help to address their own deteriorating financial health. On the other end however, the rich and affluent are seeking financial help in droves mainly because they are seeing their fortunes dwindle. As a matter of fact the Bureau of Labor Statistics predicts Financial Advising as a profession is to grow by 32% before 2020. What does all this mean? That it is about time you learnt how to be financially strong in a big city; look around, everyone’s doing it.
You see, we are living in the biggest financial squeeze since the 20’s and all the fancy stuff you learnt in your economy class just isn’t going to cut it. Instead, the following tips provide you with various smart ways to increase your financial strength in a tough economy.
How to be Financially Strong in a Tough Econom
1. Manage Your Money Wisely
Money is a big part of your life and obviously you need to understand where is it coming from, where it is headed and how to attune it to values that matter most to you. Here’s how to manage your money;
- Do not spend more than you earn- This is the first law of personal finance. Realize that if you continuously spend more than you earn, you’re bound to end up in debt. And the best way to get out of debt is to spend more money, which you did not have in the first place. So to avoid the mess and stress that comes with debts consider spending less than you earn by eating indoors, bringing your coffee from home, driving less and buying smart.
- Create an emergency fund- You know as well as I do that life rarely goes as planned, reason why setting aside an emergency fund for unforeseen events is one of the best ways to set your finances in order. It isn’t that complicated either, all you have to do is save 3-6 months of living expenses and keep the money in a money market account. Most important of all, only use the money for emergencies.
Manage your Debt- Debt is not just a money issue, in fact it digs into all elements of your life. Fortunately solutions are wide and varied. Plus, the earlier you deal with them, the easier they are to handle.
It is important that you set Financial Goals and even though perhaps you won’t be able to achieve every financial goal that you have ever dreamed of, however, if you identify your priorities and work out where you want to be financially, it becomes easier to narrow down your goals and come up with a set of specific and achievable goals that put you in charge of your money.