From a distance, the American economy is doing well. Data from the government shows that the unemployment rate is at the lowest level since 1950s. We are continually told that there are more vacancies than there are applicants. However, the reality is that things are not as great as we are told. Americans are deeply in debt. A recent report showed that an average American has debts worth more than $38k. Another report said that most Americans were working more than two jobs. At the same time, most of them are not making any savings. Wages are not rising fast enough and the cost of living has gone up significantly. Here are some ideas to help improve your personal finances.
Debt is a good thing. In fact, it is almost impossible to imagine a life without debt. Debt is what helps power the global economy. Still, debt presents significant risks to you because it affects how you deal with your finances. A recent report found that a substantial amount of people’s salaries went to pay their debt. Therefore, you should take time to study all debts that you have. Look at the student loans, auto loans, and mortgages and then see how you can help reduce them. You can settle with your lenders and if possible, you can consolidate. By consolidation, you can get a good lending platform like Tunaiku that will offer you favourable interest rates.
One reason why most people are not living their best lives is that they are not thinking before they purchase. They are extravagant. They want the best car, the best house, the latest smartphone, and the latest smart watches. They want it all. The problem with this is that these people are buying things that they don’t need. They are spending their hard-earned money and loans to buy things that they can do well without. Therefore, we recommend that you take time to think before you buy. Have a budget and stick to it.
Technology has made it possible for people to do more work. These days, anyone can work for a few hours every day because of technology. Think about this. You can activate your Uber account and carry someone when you are going to work. If you have an extra room, you can make some money by accommodating someone. If you have a talent, you can monetize it by creating a video channel. If you have stories to tell, you can easily start a podcast. There are so many things that you can do to earn extra money.
Another things that technology has made possible is to increase the amount of things we order online. A good way to deal with debt is to think of areas where you are spending money. One of the most common places is in the internet. These days, there are so many products that we are subscribed to. There is Netflix for movies, Spotify for music, Google One for cloud, and Office 365 for productivity. You should think about these subscriptions and whether you need them all.
Personal finance is a great thing that you should always think about. By using some of the tips we have mentioned, you will be at a good place to save money and live a comfortable life.