How to improve your financial position in these times of uncertainty is something that a lot of people are asking, maybe you are too.
There is plenty of talk about recession, property prices crashing, stock markets being overpriced and job losses on mass. It’s scary stuff, and too be honest, probably going to get worse before it gets better.
Now before I go any further I want to include a public service announcement. I’ve said this before and I will continue to say it, please do not get your money management and investing advice from the mainstream media. They are not interested in facts or reality, just what will generate the most eyeballs and in most cases hysteria.
If you want an example of what I am talking about, recall the recent example here in Australia. At the start of the pandemic, the media were running headlines and stories that property prices could crash by more than 30%…
This was a grab from a big four bank CEO that was taken out of context, given he also said that this was a worst-case scenario and highly unlikely to actually occur. However, if you only watched the media story you were left believing that the property market was about to crash.
Speaking with some agents at the time and they confirmed that buyers were all saying they were putting off bidding for properties because they wanted to wait for the bargains to appear.
We now know what actually happened, prices went on one of the all time greatest surges we have ever seen. FOMO kicked in and people were bidding up prices at a crazy rate. So much for the crash and the bargain prices.
Ok, so rant and public service announcement over, let’s look at what you can do to improve your financial position, other than avoiding the mainstream media lol.
4 Tips to Improve Your Financial Position
If you want to be more financially stable, then you must be willing to take a hard look at your habits and make changes accordingly. It’s not enough to wish and hope that you’ll be rich and wealthy one day.
You’ve heard me bang on about taking action many times. Well now is a time for massive inspired action.
While miracles do happen, it’s more likely than not that you won’t win the lottery and will need to take control of your finances to improve your situation. You’ll be a lot happier for it and will sleep better at night knowing you have the money you need to live and pay your bills.
Learn from your mistakes or your past and focus on what you can do now and in the future to set yourself up for success.
Tip One: Set Goals for Your Household and Future
Improve your financial situation by setting goals for what you want to achieve. Otherwise, you risk falling back into old habits. Make sure you discuss these with your spouse and that you get on the same page.
You should both agree on how much you want to spend and save on household items and big purchases you want to make in the future. You’ll be much more likely to improve your financial situation when you’re working together and helping each other out in this area.
Your goals don’t need to be huge. If you are looking to improve your financial position, start with small steps. This could be saving a few hundred dollars a month from your expenses, or making a few hundred extra from selling stuff or doing more hours (if that is an option)
The key here is to have a plan for what you are trying to achieve.
Tip Two: Think of Ways for Earning More
These days there are many ways to earn more money, especially online so you don’t even have to leave your home. You can continue with your job, and have a side hustle at the same time to help your financial situation.
In fact, recent data suggests one in three people now have a side hustle in addition to their job. It’s no longer a choice in a lot of cases, it’s becoming a necessity. Even established business owners are setting up additional income streams from side hustles.
For example, you can start a blog and run advertisements and promotions or be a driver for a ride-sharing service. Your options are endless if you’re willing to put in the extra time. The more you can earn, the more money you have to put toward necessary purchases or your savings account.
Tip Three: Consider Moving
You may need to move and go where opportunities and good jobs exist to improve your financial situation. This is a little left field for me but you can check this out to see areas that may have the best education and quality of life so you know where you might have the best chance of succeeding.
Interstate migration is one of the most popular choices for people looking to improve their financial position. A sea change can be very successful if you are able and up for it.
You also want to make sure that you can afford where you live and aren’t stretching your finances too thin. Do your homework in advance and commit to buying a house that’s in your price range and that you can afford.
With everything that has been going on in the world, there has been ample time to reflect on life and our circumstances. There is an opportunity to use this time to adjust your lifestyle and potentially save a lot of money by looking to live where you can best afford rather than where you think it looks good to others, just sayin’ ????
Tip Four: Cut Back and Save Your Money
If you cut back your spending, then you’ll have a better chance of improving your financial situation. The more you spend, the less you have, simple right?
This may cause you additional stress and strain in your life. You don’t want that either, it’s not good for your health or your happiness.
Instead, focus on saving your money, so you have some put away for retirement and an emergency. You want to have money available in case you encounter unexpected surprises and need access to funds quickly.
It is possible to save money even if you’re in a tight situation when you put your mind to it and alter your lifestyle and spending habits a bit.
Take a look for a week at where your money goes, you will be surprised by how much leaks out to the unknown or not so necessary. Adjust the spending on these items, without feeling like you are depriving yourself, and you will be amazed by how much you can improve your financial position.
So there are my four tips for how to improve your financial position. With a little care and attention, you could be saving hundreds or thousands of dollars a month.
Once you have made the choice to improve your position, the next step is to make sure you are protecting yourself from these events in the future.
Taking action now will prevent you from being exposed to extraordinary events in the future. By securing your financial position with these simple but effective steps, you can move into the next phase of financial security, and that’s investing your surplus into quality assets.
Let me know what tip or action you are going to take this week. Small steps is all it takes!
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