The last three years have been a challenge for virtually everyone. Not only have people had to deal with lockdown orders, travel restrictions, and fears of becoming ill – many have also been struggling financially. Indeed, financial stress has become common these days, and it can be caused by several things, such as unexpected expenses, the compulsion to make unnecessary purchases, and debt.
You might feel it is impossible to get through your financial situation without the proper coping methods or support. But don’t fret; it is possible! If you are currently experiencing financial stress, there are two crucial things to keep in mind: 1. You are not alone, as there are many people or services that can help you, and 2. There are some foolproof ways to regain control of your finances. In this article, we share the best tips on how to have more financial control in life.
1. Set aside money for emergencies and unplanned expenses
One of the most effective ways to minimise financial stress is to build an emergency fund covering emergencies and unplanned expenses. If you are not earning enough to set aside money and are struggling with loans, building up a large fund might seem impossible. However, setting aside just $50 each month will rapidly add up to a significant amount of savings.
Initially, striving to have at least $1,000 in your emergency fund would be best. Once you are already earning enough money to save a little more, try having two to six months’ living expenses in your fund. The best thing about having an emergency fund is that it will give you the psychological security to stay calm in stressful financial situations. Should any unplanned expenses come up, you will have the money to address them.
2. Make it more difficult to spend
It is almost impossible to be financially in control if new purchases keep exhausting your money and adding to your debt. Most of the time, people cannot save money for emergencies and their future because they tend to purchase unnecessary things that are out of their budget. If you are one of these people, it would be best to start fixing your impulsive purchasing habit.
If you have credit cards, consider hiding them so you cannot keep charging, or at least leave them at home whenever you go out. Furthermore, being aware of how much debt you have might help you stop charging. Make a list of all debts, the overall amount owed, and the interest rate every money lender charges you to borrow. By knowing how much money you have and how much debt you still owe, you might convince yourself to become a more responsible purchaser.
3. Consolidate your debt
Having so many debts at once can cause extreme financial stress. Especially nowadays, where instant cash loans are very accessible, you can easily fall into the trap of an endless debt cycle. If you are currently struggling to repay your loans because there are just so many of them to keep up with, it is highly advised that you consolidate your debt.
There are plenty of reliable debt consolidation loans in Singapore, where you can roll your various debts – whether loan payments or credit card bills – into a single loan or monthly payment. This way, you can simplify your payments and possibly have lower payments each month. Debt consolidation has been proven by many to be an effective form of money management.
4. Track your progress
If you wish to have more financial control, it is necessary to always look at your monthly budget and adjust it accordingly to fit your actual finances for the month. Then, as you start saving enough money, slowly begin to pay your debt to reduce your financial stress – most importantly, keep track of this progress.
By being aware of how much money you have instead of sitting in uncertainty, you can decrease your stress levels, which will help you establish a more positive relationship with money in general. As you gain more financial control, you can even reward yourself with an incentive for your hard work. For instance, for every $300 you save, you can perhaps spend $30 on a nice meal or one purchase from your wish list.
Financial control has become more critical now than ever. As the world currently faces the economic consequences of the recent global health crisis, it is necessary for every individual to be more in control of their money to ensure their financial survival in the months or years to come. By doing something as simple as creating an emergency fund, changing your purchasing habits, consolidating your loans, and tracking your progress, you can already have better control of your finances.
If you are in need of a reliable and extensive debt consolidation loan to help boost your financial control, Orange Credit is here to help you! We are a trusted money lender that offers valuable loans with fast loan approval in Singapore. If your concern is consolidating your loans in the safest and smartest way, our debt consolidation plan will surely not disappoint you. Feel free to get in touch with us today to learn more about our debt consolidation loan and other types of easy and flexible loans.