Few people are lucky enough to have no experience with financial issues. In fact, many of us face the same struggles and challenges when it comes to building financial security, saving money, and adjusting to major life events.
Whether your personal finances are a temporary worry or a constant source of stress, the good news is that you don't have to face these issues forever. For every financial problem, there are solutions that can help you adjust your financial strategy?and improve your ability to save for the future. Here are the top 7 problems most people face.
1: Monthly spending exceeds income.
Many individuals struggle with the basic challenge of having an income that doesn't cover their expenses. The first step to overcome this obstacle is to set a monthly budget that categorizes expenses to rein in excessive spending.
2:?You can't get out from under car payments.
Car payments can eat up spare income every month, and if you've recently upgraded your vehicle, you might feel like you're always making car payments but never paying your vehicles off. By changing the way you approach car purchases, you could reduce your losses and minimize the cost of car payments.
3:?You carry a credit card balance every month.
Credit cards charge high interest fees on any balance carried over from one month to the next. As you re-evaluate your budget and work to reduce expenses, make sure your income is also able to pay off credit card balances every month, saving yourself from fees that push you further into debt.
4:?You don't have an emergency fund.
Life events like a loss of income, car breakdown, hospital visit or other unforeseen event can put persons into a hole if they don't have an emergency fund at their disposal. Even a fund of $ 500 can save you from having to take on credit card interest or open a personal loan. Dedicate part of your monthly budget to save for this emergency fund. Even contributions of $50 a month can add up quickly, creating a buffer that will come in handy when a rainy day hits.
?5. A new baby brings unexpected costs.
Children are expensive. Everyday items like diapers, formula and baby food can stress monthly budgets and checking accounts even before new parents face the cost of daycare and other unavoidable expenses. If possible, plan ahead and start saving for these expenses before they hit. Even if you do manage to put away some baby-specific savings, you may still need to look at your budget and create space in your monthly spending to accommodate these new demands.
6. You aren't saving enough for retirement.
Many persons are worried they aren't saving enough for retirement. But it's never too late to start trying to catch up. Starting early in life to save for retirement is the simplest mantra here.
7. You feel overwhelmed by financial matters.
Personal finance is a complex subject, but it has implications that will affect you the rest of your life. If you're feeling overwhelmed or confused by your own financial situation, it's worth the time and money to take a financial literacy session with us.
Financial challenges may sometimes seem insurmountable, but there's always a way to address these obstacles and build a better financial future. It may not happen overnight, but with patience and persistence, you can take steps to strengthen your financial outlook and put these challenges in your rear-view mirror.
