If you have ever had a car that broke down and no way to pay for repairs, you understand the frustrating of barely getting by. This type of financial struggle might be avoided with a few simple techniques. Here are some tips to help you avoid financial struggle and always have money when you need it.
Save Ten Percent of Your Paycheck
Saving money is the obvious first tip for avoiding struggles, but it is also very difficult to do. One of the easiest ways to save money is have your human resources department transfer a percentage of your paycheck to your savings account. You won't even see the money in your checking account or on your printed check. That money goes right into savings and stays there until you need it. You can choose any amount you want, depending on your budget, but starting with ten percent is good. It is a small amount that you probably won't miss.
Start a Health Savings Account
Medical expenses quickly add up, even when you have medical insurance. If you find that you are spending a lot of money on co-pays, prescription medications, and dental procedures, get a health savings account (HSA). You will choose how much of your paycheck to transfer to the HSA, which not only lets you build up savings for medical expenses, but it is also tax-free money.
Make Small Investments
Investing doesn't have to begin with thousands of dollars; you can start small and simple. If you have an extra few hundred dollars in your savings account, why not convert that traditional savings account into one that collects interest? Over time, the money that is transferred to that account starts earning interest and you make money without even trying. You could also try other small investments, such as investing in silver and gold, or choosing low-risk stocks.
Spend Your Money Wisely
When it comes to making purchases, there are some mistakes people often make that can add up fast and reduce your savings to almost nothing. One mistake to avoid is buying things just because they are on sale. This is an unfortunate trap people get caught in. If you already have a 12-pack of toilet paper rolls, do you really need to buy another 24-pack just because it happens to be on sale? Another mistake is impulse buys, which can really get you. Even if it is an inexpensive purchase at the checkout counter, these add up very fast. Whenever you buy something, do so with purpose. If something is on sale, make sure it is something you need and will get use out of.
Last-minute expenses happen when you least expect them, even if you are trying to avoid financial struggle. If you have a financial emergency that you aren't prepared for, consider getting a payday loan. This will give you the money you need right now and allow you to focus on improving your financial situation once the emergency has been taken care of.