Financial Tips for Tough Economic Times

Tip 6. Reduce your energy expenses.saving 2

You can’t stop using utilities, but there are ways to be more efficient, and when you are looking at tough economic times, this is a financial tip that can go a very long way. So, start taking slightly shorter showers, only wash clothes that are actually dirty, car pool if you can, use public transit if you can, turn the television off when you are not in the room, use natural light, and more.

 

Tip 7. Don’t look if you can’t take it.

A lot of times people who face tough financial times freak out and do things they will later regret. For example, they check their portfolios too often, and sell because they see things dropping. They take big losses, and it is usually because they panic and sell based on irrational, emotional reasons. So, if times are tough, and you do not need the cash from the investments to pay your bills, then do not bother checking investment accounts or checking stock quotes, instead, cut out your financial anxiety, and do not bother with selling, stay in for the long haul. It will be well worth it, and you won’t regret it, especially when the market turns around.

 

Tip 8. Claim more on your taxes.

This is going to mean that you do not get a tax return, but it means that on a monthly basis you will have more money available to you. When times are tough and money is tight, then you will appreciate the little extra you get. Why not make interest off that money yourself instead of letting the government earn interest off it. Just be careful not to over claim because you may end up owing come tax time, and that can be a stress that some people cannot handle. So, talk to your financial advisor or a tax professional before you make any changes.

 

Tip 9. Save money.

One of the best financial tips you can follow besides paying down debt, is to grow a bigger savings account. What are you going to do if you have something come up like a car breakdown? If you have no money to pay for it, and can’t get to your work, then what do you do to pay your bills? Having a savings account can mean that if you lose your job you have some money to live off of for the time being. If you can do it, be sure to save enough money for 3-6 months of expenses. If you can, try to save enough to cover your expenses for a whole year. A good savings plan can keep you out of debt, and can help you ride through rough times, job loss, and increased expenses due to an economic downturn.

 

Tip 10. Learn the difference between needs and wants.

Anyone looking to improve their financial outlook, no matter what the economy is like should learn how to be content with what they have, and learn the difference between needing something, or wanting something. Often people spend untold amounts of money on stuff they think they need, but actually just want. For example, you may need a car, but does that mean you need the one with the heated seats and cup holders? One of the best ways to help yourself to eliminate the need versus wants is to never buy something right away. Instead of buying things as soon as you want them, wait a few days, and then see if you still need it as much as you thought. You will probably save some money and you won’t have nearly as much stress because you won’t get into debt as easily.

When you want to make it financially during tough times, it is a good idea to follow these tips, and recognize your own problems. If you are an emotional spender, that is what you should work on. If you stink at saving, figure out ways to pay yourself first. If you get scared too easy and make bad market decisions, then don’t log on to your investment accounts. It is up to you to determine what financial areas  you struggle with the most, and then practice good financial habits elsewhere as well.

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