Surviving a Downturn: 5 Dos and Don’ts of Protecting Your Finances

We live in a time of economic uncertainty, and it doesn’t matter what country you’re from or what kind of income you’re on, how much savings you have or what investment plans you implement, we never know what’s around the corner.

One wrong choice, one missed payment, or a series of unfortunate events trigger a number of events that lead to you being financially trapped. This is why it’s so important to protect your finances and stop this from happening.

Today, we’re going to explore the five dos and don’ts that you need to remember in order to set up this protection, ensuring your financial freedom is maintained, no matter what the future holds.

#1 – DO Get Out of Debt

Debt is one of the biggest challenges we face in the modern age, especially with the average US citizen holding onto an average of $6.929 per head; and that’s just credit card debt. Getting out of debt is essential if you want to live in financial security, so make sure you’re paying it off as soon as possible to avoid interest and fees.

#2 – DON’T Leave Above Your Means

If you’re spending more money than you’re earning, this is an obvious way to find yourself in financial trouble, or worse, financial ruin. Be mindful of your finances and make sure you’re spending way below what you’re earning in order to maintain freedom.

If you’re having problems with your finances, or you need financial advice to help you through the future, invest in professional help, such as a Lincoln financial attorney, who can advise with what you need to do next.

#3 – DO Have Savings

You never know when an unexpected bill or repair is going to come up, and you never know how much this is all going to cost. This is why it’s vital to make sure you have savings ready for those rainy days. As a rule of thumb, save 10% of everything you earn to keep everything covered.

#4 – Don’t Assume Everything Will Be Okay

It’s so easy to fall into the habit of turning a blind eye to our finances and ignoring what’s going on. Some of us know our finances are in a bad state of affairs and won’t want to address them because we’re scared of admitting it’s gone wrong.

However, this is only going to make things worse. Make sure you’re proactive with managing your outgoings to make sure everything is managed optimally.

#5 – DO Look for Ways to Save Money

It’s so important that you spend time looking through your finances at ways you can save money and cut back on expenses. This is so important because so many people have been paying out for services they don’t need, nor want, nor use.

Look at gym memberships you’re paying for but not using. Look at the streaming services you’re paying for but don’t actually need. Take control of your finances and don’t let your hard-earned money slip through your fingers.

Summary

In short, there’s really nothing better than living with financial freedom. Imagine waking up in the morning and never having to worry if something goes wrong or how much you’ve got in your account. You can just get on with your day without a care in the world. It’s possible; you just need to work for it.

Leave a Reply

Your email address will not be published. Required fields are marked *