Once you’ve sunk into enough debt or lost a certain amount through investments, it can feel like there’s a long way to get back to where you were. True, a lot of people who decide to recover their finances through a gradual, drawn-out process. However, there are still many quick fixes you can use to bring your finances back to a more stable condition. Here are a few to consider.
1. Control Your Debt
The first fix I can suggest is controlling your debt as directly as possible – through your creditors. You may view lenders as some big bad company who tend to ignore what their customers have to say. However, this is rarely the case. If you were to call up your lender, and simply ask for a lower interest rate, you may be surprised by what follows. Many creditors are happy to reduce their debtor’s interest rates; all you have to do is ask!
From there, it’s important to start getting a tighter handle on your credit. I’d start off with the card that has the lowest balance or highest rate of interest, and setting yourself a strict target for paying off any remaining debt.
2. Bolster Your Portfolio
This may sound a little backwards, but my next suggestion is to start bolstering your portfolio. When some people make a point of sorting out all their finances, they’re focussing on the here and now, and ignoring their future. I urge you to be selfish. From now, devote a little more time and money to saving for your retirement, ensuring that it’s as carefree and happy as you’d like it to be.
You can start off by upping your contribution to your work retirement plan, or whatever the tariff you’re currently using. From there, I’d suggest spreading out your assets through a few low-risk investments. Index investing such as SDPRs or an ETF is great for betting with the house.
3. Hire An Accountant
If your finances are diverse and convoluted enough for you to go looking or blogs like this, then you may benefit from hiring a professional accountant. If reading any terms related to accounting makes you scratch your head, or you have a hard time understanding reports and financial statements, then you could be making some very heavy decisions without fully understanding them.
An accountant would be able to filter all this jargon into straight, simple English. Perhaps you have a decent knowledge of how to manage your books, but doing so is taking you away from more important things like growing a business. Again, if you find yourself in this situation, then hiring an accountant could be the quick fix you were looking for.
If your finances seem to be in chaos at the minute, then the whole task of managing them again might feel like climbing a mountain. While it may not be child’s play, these easy fixes should give you a great start towards stable, manageable finances.